Market Analysis: Gold Price Hits New High While Crude Oil Price Consolidates
Gold price surged toward the $2,400 zone and traded to a new all-time high. Crude oil is attempting a fresh increase above the $85.00 zone.
Important Takeaways for Gold and Oil Prices Analysis Today
· Gold price started a strong increase above the $2,350 zone against the US Dollar.
· It broke a key bearish trend line with resistance at $2,345 on the hourly chart of gold at FXOpen.
· Crude oil is consolidating above the $84.00 support.
· There is a connecting bearish trend line forming with resistance near $85.60 on the hourly chart of XTI/USD at FXOpen.
Gold Price Technical Analysis
On the hourly chart of Gold at FXOpen, the price formed support near the $2,300 zone. The price remained in a bullish zone and started a strong increase above $2,320.
It broke a key bearish trend line with resistance at $2,345. The bulls even pushed the price above the $2,350 level and the 50-hour simple moving average. Finally, it traded to a new all-time high at $2,395.
The price is now consolidating gains near the $2,385 zone and the RSI corrected from 80. Initial support on the downside is near the 23.6% Fib retracement level of the upward move from the $2,319 swing low to the $2,395 high at $2,378.
The first major support is near the $2,350 zone and the 50-hour simple moving average. It is close to the 61.8% Fib retracement level of the upward move from the $2,319 swing low to the $2,395 high.
If there is a downside break below the $2,350 support, the price might decline further. In the stated case, the price might drop toward the $2,325 support.
Immediate resistance is near the $2,395 level. The next major resistance is near the $2,400 level. An upside break above the $2,400 resistance could send Gold price toward $2,420. Any more gains may perhaps set the pace for an increase toward the $2,440 level.
Oil Price Technical Analysis
On the hourly chart of WTI Crude Oil at FXOpen, the price found support near the $84.00 zone against the US Dollar. The price formed a base and started a recovery wave above $84.50.
The bulls were able to push the price above the 50% Fib retracement level of the downward move from the $85.99 swing high to the $84.33 swing low. The hourly RSI is near the 50 level, but the price is struggling near the 50-hour simple moving average.
Immediate resistance is near the $85.35 level. There is also a connecting bearish trend line forming with resistance near $85.60. It is close to the 76.4% Fib retracement level of the downward move from the $85.99 swing high to the $84.33 swing low.
A clear move above the trend line resistance could send the price toward the $86.40 resistance. Any more gains might send the price toward the $87.00 level.
Conversely, the price might start a fresh decline from the $85.35 resistance. Immediate support sits near the $84.35 level. The next major support on the WTI crude oil chart is $84.00.
If there is a downside break, the price might decline toward $82.50. Any more losses may perhaps open the doors for a move toward the $81.20 support zone.