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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’s rally may be pausing for breath, while oil has recovered its losses and is looking to push higher. 

Gold bars
Source: Bloomberg

Gold to have a short stop on the way up?

Gold longs have done well over the past week, but a pause would now be entirely plausible. The price has neared resistance at $1264, where the first part of the post-December rally peaked on 27 February.

A drop back from this level could also provide a more meaningful retracement, which has been lacking over the past 48 hours. As long as $1240 holds the rally is intact, while further upside targets above $1264 lie at $1270, $1276 and then on to $1300.

Brent getting bullish

Yesterday’s surge put the fight back into the Brent, reversing Tuesday’s losses. Now the price needs to push above $52.50, the area above which gains have proved fleeting since the beginning of the week.

Above here the price will target $53.82. Yesterday’s dip to $51.50 brought out the buyers, so similar instances should be viewed as further buying opportunities. The bullish outlook is only seriously threatened if we see a drop back below $50. 

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