Skip to content

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 expected to break higher amid short-term retracement, while Brent prices look set for further downside.

Video poster image

Gold retraces after recent rally

Gold has been retracing after the rally seen on Monday, with the dollar strength denting its bullish resurgence.

There is a strong possibility that this is a precursor to another leg higher. However, it is also worth being aware that a break below $1216 would provide a more bearish signal. With that in mind, a bullish picture remains in place unless we break below $1216.

Brent breaks lower from consolidation phase

Brent managed to break lower following the continued respect of the $81.63 resistance level.

That builds on the bearish pattern in play over recent weeks, pointing towards further downside. Given the relatively minimal decline beyond the $79.64 support level, it looks like we should have further left in the tank, with a bearish view holding unless we break above the $81.63 level.

This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.  Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. 

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.

Find articles by writer