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CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Technical analysis: key levels for gold and crude

Gold is back on the bearish path of earlier this year, while oil’s attempt to break $70 has been firmly rebuffed.

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Gold’s decline moves up a gear

Gold’s price continues to drop back from the peak seen last week.

The next areas of support to watch are $1180 and then $1160. If the price can hold above $1180 then a higher low may be created as part of a trend from the low of August. This then brings $1205 and $1214 into play.

WTI knocked back from $70

Tuesday saw WTI rally through the $70.00 resistance zone, but then end the day below it, suggesting more near-term weakness is at hand.

One possible view is a retest of previous trendline resistance, which would now be support, around $68.30. Below $68.00 the overall outlook returns to short-term bearishness. A close above the $70.00 level is needed to reignite the bullish view.

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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.

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