Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

Technical analysis: key levels for gold and crude

Gold turns lower after recent gains, with the Brent decline also reversing after shift in risk appetite.

Gold breakdown could drive further losses

Gold continues to trade within a multi-month range, with yesterday’s early gains fading as equities rallied.

The drop below $1328 points towards the potential of further losses. Ultimately, this is a particularly choppy period given the influence of fundamental factors. However, look out for the potential of further downside, with $1321 being the near-term support. It makes sense to look for trades around the extremes of the recent $1306-$1360 range.

Brent rallies back into key resistance

Brent has managed to rally back into the $68.22 resistance level, erasing all of yesterday’s losses.

This level represents the Tuesday peak, alongside the neckline of a head and shoulders formation. With that in mind, watch for a potential move lower from here. We would need to see the price rally up through $70.00 to start looking bullish once more. Until then, with the stochastic overbought and turning lower, there is a good chance of a bearish turn before long.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Find articles by writer