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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

A stronger greenback is hurting commodity prices, stymying attempts by gold and oil to recover lost ground. 

Oil pump figure
Source: Bloomberg

Gold under selling pressure

Gold continues to succumb to selling pressure, dropping back below the key long-term downtrend line that runs back to the 2011 high. A steep retracement over the past few days could now see buyers emerge, as they look to hop on board the rising trend off the July lows.

A close below $1264 would be another bearish development, and raise the prospect of a move back to the area around $1250.

WTI remains below the 100-day SMA

WTI’s price bounced off the $47.12 support level yesterday, but remains stuck below the 100-day simple moving average (SMA) at $48.18.

We would need to see a close back above this indicator to become more bullish. A close below $47.12 likely opens the way to $46.60, the 50-day SMA. 

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