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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Please ensure you fully understand the risks involved. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Please ensure you fully understand the risks involved.

Technical analysis: key levels for gold and crude

A drop in the dollar has given commodity prices a boost.

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Gold rebounds for now

Dollar weakness has allowed gold to rebound from the lower high created at the end of last week, but with all three main moving averages pointing lower the downtrend remains firmly intact.

A bounce back to $1260 would see the previous swing high challenged, and then on to the downtrend resistance line around $1270. A fresh decline will challenge support at $1214 and then $1204.

WTI forms a higher low

A bounce for WTI from the area of the 100-day simple moving average (SMA) at $67.28 suggests that another higher low has been created and that a push back towards $74.00 could be underway here.

The bullish view remains in place unless we see a close below last week’s lows around $66.30.

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