Market Analysis: Gold Price Dips While Crude Oil Price Could Extend Gains

FXOpen

Gold price is correcting lower from the $1,988 resistance. Crude oil price is rising, and it could climb further higher toward the $77.10 resistance.

Important Takeaways for Gold and Oil Prices Analysis Today

  • Gold prices failed to clear the 1,988 resistance and corrected lower against the US Dollar.
  • Gold traded below a key bullish trend line with support at $1,980 on the hourly chart at FXOpen.
  • Crude oil prices are moving higher, above the $75.00 resistance zone.
  • There is a key bullish trend line forming with support near $75.60 on the hourly chart of XTI/USD at FXOpen.

Gold Price Technical Analysis

On the hourly chart of gold at FXOpen, the price climbed above the $1,966 resistance. The price even broke the $1,980 level before the bearish sentiment arose.

XAU/USD traded as high as $1,987 before the downside correction. There was a move below a key bullish trend line with support at $1,980. The price settled below the 50-hour simple moving average, and RSI dipped below 50.

The bulls are now protecting the 50% Fib retracement level of the upward move from the $1,945 swing low to the $1,987 high at $1,966. If they remain active, the price could start a fresh increase.

Immediate resistance is near the 50-hour simple moving average at $1,978. The next major resistance is near the $1,988 level. An upside break above $1,988 could send the Gold price toward $1,995. Any more gains may perhaps set the pace for an increase toward the $2,000 level.

Initial support on the downside is near $1,966. The first major support is near the 61.8% Fib retracement level of the upward move from the $1,945 swing low to the $1,987 high at $1,962.

If there is a downside break below this level, the price might decline further. In the stated case, it may drop toward the $1,955 support.

Oil Price Technical Analysis

On the hourly chart of WTI Crude Oil at FXOpen, the price started a decent increase against the US Dollar. It gained bullish momentum after it broke the $72.50 resistance, as mentioned in the previous analysis.

There was a sustained upward move above the $75.00 and $75.60 resistance levels. The bulls pushed the price above the 61.8% Fib retracement level of the downward move from the $76.81 swing high to the $74.45 low.

It is now trading above the 50-hour simple moving average, and the RSI is rising above 60. The bears seem to be active near the 76.4% Fib retracement level of the downward move from the $76.81 swing high to the $74.45 low.

If the price climbs further, it could face resistance near $76.80. The first major resistance is near the $77.10 level. Any more gains might send the price toward the $78.80 level.

Conversely, the price might correct gains and retest the 50-hour simple moving average and a connecting bullish trend line at $75.60. The next major support on the WTI crude oil chart is near $75.00.

If there is a downside break, the price might decline toward $73.80. Any more losses may perhaps open the doors for a move toward the $72.50 support zone.

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This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

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