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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 and Brent prices have taken a turn, and with key support approaching, things could be about to get even worse.

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Gold heading towards crucial double-top neckline

Gold has continued its decline, with the price falling below the 76.4% retracement and heading into the key $1306 support level.

A break below there would bring a bearish wider view for this market. As such, the ability, or inability, to break below that level will be a key determinant of market bias going forward.

Brent tumbles towards key support

Brent saw another sharp leg lower yesterday, following the latest US crude inventories figure. This $64.25 level will be a key determinant of market direction as we move forward, with a break to the downside greeted with a wider bearish outlook.

Such a break would look towards the $61.67 low as the next key support level to target. Alternatively, until we see a break below $64.25, there is still a chance of a belated bounce for crude prices.

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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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