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Technical analysis: key levels for gold and crude

Gold rallies as crude sells off, marking a clear risk off sentiment permeating through the commodities.

CFDs are a leveraged product and can result in losses that exceed deposits. Trading CFDs may not be suitable for everyone, so please ensure you fully understand the risks and take care to manage your exposure.
Gold daily chart
Source: Bloomberg

Gold
Gold has been seeing substantial gains this morning, as investors seek out havens despite the gains seen in the indices. This is a continuation of the uptrend that has been in play since the turn of the year and as such further gains seem justified for both the medium and short-term.

As such, any pullback is expected to be temporary, with the initial support level of $1327 worth watching should we reach it. A bearish view is in place unless we see an hourly close below $1320.

Brent
Brent has taken a turn for the worst over the past 24 hours, with a move lower from the $51.45 level. Crucially we didn’t see a break through the $51.73 resistance level, and as such we continue to create lower highs on the wider timeframe.

As thing stand price is turning lower, with a break below $49.55 key to continuing this short-term downtrend. A break back above $50.67 would be required to negate this bearish view.

WTI
​US crude has similarly reversed lower following a failure to break back above $50.56. With price currently seeking out a new intraday low, this sell-off looks likely to persist until we see an hourly close back above $49.48.

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CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.