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CFDs are complex instruments. 70% of retail client accounts lose money when trading CFDs, with this investment provider. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money.

Technical analysis: key levels for gold and crude

Gold looks set to turn lower, while Brent is reaching a critical junction after recent losses.

Oil pipes
Source: Bloomberg

Gold turning lower after 76.4% retracement

Gold failed to break through the $1238 mark earlier in the week, and with the price respecting the 76.4% resistance mark, there is a growing chance of another leg lower from here.

The creation of a new lower low last week points towards a potential lower high coming into play. With the respect of Fibonacci resistance bringing about greater confidence that makes such a move occur, there is a good chance that we will fall below the $1212 support zone to bring us into the deeper retracement levels around $1205 and $1195.

Brent attempts fightback after deep pullback

Brent has declined towards the critical $70.49 support level, with a break below that level providing a wider bearish outlook.

Given the importance of that level, there is a good chance we will see some form of rebound from here, with a break through trendline and horizontal ($74.11) resistance providing us with a more bullish outlook. As such, keep an eye out for a break through either $74.11 or $70.49 to provide the outlook from here.

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