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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 attempting to rebound from the bottom of a long-term range, with an overnight retracement providing potential buying opportunities. Meanwhile, the Brent price continues to surge, hitting a new three-year high.

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Gold pullback could bring buying opportunity

Gold has been pulling back after a rebound from the bottom of a wider range between $1307 and $1367. With the price seemingly starting to move into a more bullish phase, this pullback looks like it could be a short-term move before we see gold move higher once again.

Given that the price is around the 76.4% retracement, there is a good risk to reward associated with long positions around here. A fall below $1304 would negate this bullish view, but look for a break below $1301 in particular to potentially pave the way for a bearish breakout.

Gold price chart

Brent breaking higher yet again

Brent is surging higher yet again, following on from a move back into $76.43 support yesterday. The respect of that support level paved the way for further gains, and provides a bullish outlook that holds as long as we remain above yesterday’s low.

A fall back below $76.43 would point towards a wider retracement of the rally from $72.39. However, for now, it looks likely we will see further upside come into play. 

Brent price chart

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