Gold Price And Crude Oil Price Could Accelerate Further

FXOpen

Gold price gained traction and surged above the $1,880 resistance. Similarly, crude oil price is showing positive signs above $40.00 and it might continue to rise.

Important Takeaways for Gold and Oil

  • Gold price extended its rise and traded to a new multi-year high above $1,885 against the US Dollar.
  • There is a major bullish trend line forming with support near $1,830 on the daily chart of gold.
  • Crude oil price remained in a positive zone and it surpassed the $40.00 resistance.
  • There was a break above a key bearish trend line with resistance near $33.50 on the daily chart of XTI/USD.

Gold Price Technical Analysis

Gold price started a strong increase from the $1,500 support zone against the US Dollar. There was a clear break above the $1,600 and $1,800 resistance levels.

The price accelerated its gains above the $1,850 level and settled well above the 50-day simple moving average. It traded to a new multi-year high at $1,888 on FXOpen and it is currently consolidating gains.

Gold Price Technical Analysis

An initial support on the downside is near the $1,865 level. It is close to the 23.6% Fib retracement level of the upward move from the $1,790 low to $1,888 high. The main support on the downside is forming near the $1,850 level.

There is also a major bullish trend line forming with support near $1,830 on the daily chart of gold. An intermediate support could be near the $1,840 level or the 50% Fib retracement level of the upward move from the $1,790 low to $1,888 high.

Any further losses may perhaps open the doors for a larger decline towards the $1,810 and $1,800 levels in the near term. On the upside, an initial resistance is near the $1,890 level.

The first major resistance is near the $1,900 level. A clear break above the $1,900 barrier might call for a new all-time high in the coming days.

Oil Price Technical Analysis

Crude oil price started a strong recovery after it settled above the $30.00 level against the US Dollar. The price gained momentum and broke the $32.00 and $35.00 resistance levels.

During the rise, there was a break above a key bearish trend line with resistance near $33.50 on the daily chart of XTI/USD. The price even surpassed the 50% Fib retracement level of the main decline from the $65.42 high to $11.05 swing low.

Oil Price Technical Analysis

It is now trading nicely above the $38.00 support and the 50-day simple moving average. The first resistance on the upside is near the $44.50 and $44.60 levels.

The 61.8% Fib retracement level of the main decline from the $65.42 high to $11.05 swing low is also near the $44.65 level. A successful break above the $44.65 level might call for a strong push towards the $50.00 resistance in the near term.

Any further gains could lead the price towards the $52.00 level. On the downside, the first key support is seen near the $40.0 level.

The main support is forming near the $38.20 level and the 50-day simple moving average. Any further losses may perhaps start a strong decline below $38.00. The next target for the bears might be the $35.00 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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