Gold and Crude Oil Price Remain Supported On Dips

FXOpen

Gold price climbed towards the $1,320 level recently before correcting lower. Crude oil price is currently consolidating gains and remains supported on dips near $59.50.

Important Takeaways for Gold and Oil

  • Gold price is placed nicely in an uptrend above the $1,300 support level against the US Dollar.
  • There is a major bullish trend line in place with support at $1,305 on the hourly chart of gold.
  • Crude oil price spiked above the $60.00 level before it ran into a connecting resistance trend line at $60.40 on the hourly chart of XTI/USD.
  • The price is correcting lower, but it remains supported near the $59.50 and $59.20 support levels.

Gold Price Technical Analysis

Gold price started a solid upward move from well below the $1,295 level against the US Dollar. The price climbed above the $1,300 and $1,305 resistance levels to move into a positive zone.

The price even broke the $1,310 resistance and the 50 hourly simple moving average. It traded as high as $1,320 on FXOpen before sellers initiated a fresh downside correction. They pushed the price below the $1,310 support and the 50 hourly SMA.

Gold Price Technical Analysis

However, the price remained supported above the $1,300 level. A low was formed near $1,303 and recently the price corrected higher. It is currently testing the $1,310 resistance and the 50 hourly SMA.

Besides, the 38.2% Fib retracement level of the recent decline from the $1,320 high to $1,303 low is also near the $1,309 level. The next key resistance is near the $1,312 level, which acted as a hurdle for buyers on many occasions earlier.

The 50% Fib retracement level of the recent decline from the $1,320 high to $1,303 low is also near the $1,312 level. Therefore, a successful break above the $1,310 and $1,312 levels is must for the price to extend the current upward move.

If it declines once again, an initial support is near the $1,307 level. There is also a major bullish trend line in place with support at $1,305 on the hourly chart of gold.

Oil Price Technical Analysis

Crude oil price followed a slow and steady rise from the $57.50 support zone against the US Dollar. The price traded higher and broke the $58.00 and $58.80 resistance levels.

The price even settled above the $59.50 level and the 50 hourly simple moving average. Finally, there was a break above the $60.00 resistance area. However, the price faced a strong barrier near a connecting resistance trend line at $60.40 on the hourly chart of XTI/USD.

Oil Price Technical Analysis

The price started a downside correction and traded below the $60.00 level. There was a break below the 23.6% Fib retracement level of the recent wave from the $58.57 low to $60.40 high.

However, there is a strong support formed near the $59.70 level and the 50 hourly SMA. The next key support is near $59.50 and the 50% Fib retracement level of the recent wave from the $58.57 low to $60.40 high.

If the price continues to move down, it is likely to find a strong support near the $59.20 level. On the upside, an initial resistance is at $60.20, above which the price is likely to clear the $60.40 high and trade further higher.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

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.

Latest from Forex Analysis

GBP/JPY at Highest Level in Over 15 Years The Dollar Resumes Growth After a Corrective Pullback Market Analysis: EUR/USD Slips as USD/CHF Targets Upside Break USD/JPY Analysis: The Market is Indecisive Near Its Peak Since May 1 European Currencies Testing Key Levels: Contributing Factors

Latest articles

Forex Analysis

GBP/JPY at Highest Level in Over 15 Years

As shown by today's GBP/JPY chart, the exchange rate has not only surpassed the psychological level of 200 yen per pound but has also exceeded the peak of 29 April 2024. The market is now experiencing prices last seen

Shares

Elon Musk Contributes to NVDA Price Surge to a New Record

Yesterday, on Tuesday, Nvidia's stock price reached a historic high, surpassing the $1,130 mark, increasing by almost 7% relative to Monday's closing price. This happened after a turbulent past week, during which Nvidia published a very strong report that

What Is a Falling Knife in Trading?
Trader’s Tools

What Is a Falling Knife in Trading?

It’s often repeated that traders should ‘never catch a falling knife.’ This phrase highlights the risks of buying into a rapidly declining asset. Understanding what a falling knife is, its causes, and strategies for trading it may help traders

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.