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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

A weaker dollar has helped commodities to rally over the past week. Can this be sustained?

Oil barrels
Source: Bloomberg

Gold regaining ground

The gold rally on Friday continues to recover the ground lost over the past few weeks. Today has seen the price push back above the 200-day simple moving average (SMA), so that we now look to $1240 and $1246 as the next potential areas of resistance. Above these a broader move towards $1260 and $1267 could be in play.

It would need a reversal back below $1222 to suggest a new move lower is underway.

Gold price chart

WTI testing $47

A push higher at the end of last week confirmed the bullish strength for WTI, with the price testing $47 once more. Above the early July peak of $47.41, the price would target the 100-day SMA at $48.61, and then on to the 200-day SMA at $49.90.

Dips should continue to be viewed as buying opportunities unless the price closes back below $45.84.

WTI price chart

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