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CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved.

Technical analysis: key levels for gold and crude

Gold is under heavy pressure, while Brent is eyeing up the recent highs. 

Gold
Source: Bloomberg

Gold’s rally takes a dive again

Having clocked up a higher high earlier in the week, gold has undergone another sharp reversal, which for the time being is creating a new higher low.

Such deep retracements over the past month have provided good buying opportunities, and as long as the price holds above $1275, this may remain the case. Otherwise, a decline below $1275 would target $1264. 

Brent turns higher after weakness

A modest recovery is underway for Brent, with the previous key $63.03 level likely to be tested. The past week has seen gains peter out around $63.70. Beyond this lies $64.56.

There is the potential for volatility around the Organisation of the Petroleum Exporting Countries (OPEC), but a move below $61.05 is needed to put a more bearish view on the outlook. 

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