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Technical analysis: key levels for gold and crude

Gold remains in a steady uptrend, while oil prices are fighting to recover after losses yesterday. 

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Gold bullion
Source: Bloomberg

Gold

The price has drifted back from Wednesday’s high, but overall it looks like gold remains a ‘buy on weakness’ market. First line support comes in at $1340, Tuesday’s lows, while below this we look to $1310 and then $1308.

Given further dollar weakness we could see a push above $1375 (Wednesday’s high) and on to $1400.

Brent

So far, $46.50 continues to prevent further Brent crude downside, so any bounce from here heads towards $44.80 and then $51.

A break lower might suggest the price is heading towards the 200-day simple moving average at $42.71.

WTI

A sharp drop through the $46 support level tends to suggest that more weakness is ahead.

If the price can get back above $46 then the next area is the Thursday peak at $48, and then on to $49.50. Below the Thursday low of $45, the price will head towards $42.60. 

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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.