Gold price started a downside correction after a massive upward move above $1,600. Crude oil price also declined and trimmed most gains below the $62.20 support area.

Important Takeaways for Gold and Oil

• Gold price rallied above the $1,600 level before it started a strong decline against the US Dollar.
• There was a break below a major bullish trend line with support near $1,575 on the hourly chart of gold.
• Crude oil price failed to stay above the $65.00 level and declined heavily.
• There was a break below a key bullish trend line with support near $62.55 on the hourly chart of XTI/USD.

Gold Price Technical Analysis

Earlier this month, gold price started a strong rise above the $1,555 and $1,575 resistance levels against the US Dollar, due to tensions between the USA and Iran. Recently, tension eased which resulted in a sharp downside correction from well above $1,600.

A high was formed near $1,611 on FXOpen before the price declined heavily. There a clear break below the $1,580 support area and the 50 hourly simple moving average.

Moreover, there was a break below a major bullish trend line with support near $1,575 on the hourly chart of gold. The price even broke the $1,550 support and tested the $1,540 area.

It is currently consolidating and trading near $1,547. On the upside, the first resistance is near the $1,555 level or the 23.6% Fib retracement level of the recent decline from the $1,611 high to $1,540 low.

The main hurdle is near the $1,560 area and the 50 hourly simple moving average. If there is a clear break above $1,560, the price could rise towards the $1,575 level.

The 50% Fib retracement level of the recent decline from the $1,611 high to $1,540 low is at $1,575 to protect gains. Any further upside may perhaps lead the price towards the $1,600 area.

Conversely, a downside break below the $1,545 and $1,540 support levels might push gold price towards the $1,520 support.

Oil Price Technical Analysis

A similar price action was observed for crude oil price as it started a sharp decline from well above $65.00 against the US Dollar. The price trimmed most gains and declined below the $62.20 support.

Besides, there was a break below a key bullish trend line with support near $62.55 on the hourly chart of XTI/USD. The price settled below the $62.00 area and the 50 hourly simple moving average.

Finally, there was a break below the $60.00 support and a low is formed near $58.56. It is currently correcting higher above the $59.00 level.

It seems like a declining channel is forming with resistance near $59.40. If there is an upside break above $59.40, the price could test the 23.6% Fib retracement level of the recent decline from the $65.42 high to $58.56 low at $60.18.

Besides, the $60.50 area is a strong resistance since it is near the 50 hourly simple moving average. The next hurdle is near the 50% Fib retracement level of the recent decline from the $65.42 high to $58.56 low at $61.99.

Any further gains above the $62.00 level might lead the price towards the $65.00 area. Conversely, crude oil price could continue to decline below $59.00. The next major supports are $58.00 and $56.50.

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.