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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 breaks lower, threatening to fall into a negative spiral once more. Meanwhile, Brent prices drift lower amid a clear uptrend.

Gold
Sourcce: Bloomberg

Gold breaking lower after recent gains

Gold has negated its recent recovery, with the price falling back below the $1273 mark to complete a lower high and lower low. With the price subsequently falling back below $1272, it looks like we could be heading back to trendline support once more. The key to whether this is a wider pullback before we move higher, or a beginning of a wider move lower is whether we break below $1265.

For now, the price seems to have respected the 76.4% retracement. However, should we see a break back below $1265, then the price of gold would look susceptible to significant further downside.

Brent testing support level amid recent weakness

Brent has seen a slight pullback over recent days, with the price probing below the $62.89 support level. An hourly close below there would point towards a possible retracement of the move from the $60 mark.

However, unless we break below $60, then any such downside would simply be seen as a buying opportunity, given the wide uptrend in play for Brent.

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