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CFDs are complex instruments. 72% of retail client accounts lose money when trading CFDs, with this investment provider. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money.

Technical analysis: key levels for gold and crude

The commodity rally goes on, marking a substantial about-face in sentiment and price action compared to last week. 

Gold bars
Source: Bloomberg

Gold getting strong

Despite finishing off the highs yesterday gold has continued to climb. It is still consolidating its hold above $1230, but a firm move above $1235 should open the way to $1240 and $1246.

Dips along the way should be viewed as buying opportunities, as long as the price holds above $1220. The news that hedge funds cut their long exposure by a record amount should not be seen as bearish, indeed it indicates a shift in positioning that should be viewed as bullish, as institutions begin buying gold once again.

Gold price chart

Brent pushing up  

Having pushed through the 200-day simple moving average (SMA) at $51.96, Brent is now testing the 50-day SMA ($52.44) and the rising trendline off the November low.

The next region to watch on the daily chart seems to be $53.80, while a steady retracement towards $51.60 or even $50.50 would provide a fresh buying opportunity. 

Brent price chart

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