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 has been drifting lower after yesterday’s gains, yet further upside looks likely. Meanwhile, recent crude oil weakness looks likely to persist.

Oil barrels
Source: Bloomberg

Gold pulling back, yet further upside seems likely

Gold has been pulling back since yesterday’s rally into a new nine-month high, with the rebound overnight coming short as the price heads back towards the low of $1305. A break back below that level would point towards a likely continuation of this short-term weakness.

However, until we see a break below the $1275 level, the current period of weakness would look likely to be a short-term move before we push higher once more.

Brent breaking lower once more

Brent is turning lower this morning, with the price looking likely to follow up on the triangle breakdown seen on Monday. A break below the $51.00 level would provide confirmation of that move.

Ultimately, a bearish outlook remains in play unless the price breaks above the $52.43.

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