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 weakness could be short-lived, while Brent is showing potential signs of rolling over.

Source: Bloomberg

Gold pullback could provide bullish opportunity

Gold has pulled back into the 61.8% retracement this morning, following yet another move higher yesterday. The market is showing tentative signs of bottoming out, so there is still a good chance we could see this current upside broken to the downside.

However, for now we have clear higher highs and higher lows, which are likely to continue. With that in mind, a bullish outlook remains unless we see the price fall below $1272.

Brent threatens to extend losses

Brent sold-off sharply into the $59.91 support level yesterday, threatening to break out of the recent uptrend. We have seen a short-lived recovery, with the price moving towards yesterday’s low once more.

With that in mind, it is worth watching for a break below $59.91, where an hourly close below that level would signal a likely period of weakness for Brent. On the flip-side, an hourly close above $60.66 would provide a bullish continuation signal. 

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