Gold Price and Crude Oil Price Could Start Fresh Increase

FXOpen

Gold price is trading in a positive zone above the $1,850 support. Crude oil price must clear $80.00 to start a fresh increase in the near term.

Important Takeaways for Gold and Oil

· Gold price started a decent increase above the $1,850 resistance against the US Dollar.

· There is a key contracting triangle forming with resistance near $1,865 on the hourly chart of gold.

· Crude oil price corrected lower below $80.00 and tested the $76.50 zone.

· There was a break above a key bearish trend line with resistance near $78.50 on the hourly chart of XTI/USD.

Gold Price Technical Analysis

Gold price started a fresh increase above the $1,820 resistance level against the US Dollar. The price gained pace and it was able to settle above the $1,842 resistance zone.

The price even settled above the $1,850 level and the 50 hourly simple moving average. Finally, there was a break above the $1,870 level. A high was formed near $1,877 on FXOpen and the price corrected lower. There was a break below the $1,865 level, but the bulls remained active near $1,850.

A low is formed near $1,850 and the price is now rising. The price is back above the $1,860 level and the 50 hourly simple moving average. It also surpassed the 50% Fib retracement level of the recent decline from the $1,871 swing high to $1,850 low.

An immediate resistance on the upside is near the $1,863 level. It is near the 61.8% Fib retracement level of the recent decline from the $1,871 swing high to $1,850 low. The first major resistance is near the $1,865 level.

There is also a key contracting triangle forming with resistance near $1,865 on the hourly chart of gold. The main resistance is near the $1,870 level. A close above the $1,870 level could open the doors for a steady increase towards $1,885.

The next major resistance sits near the $1,900 level. On the downside, an initial support is near the $1,855 level. The first major support is near the $1,850 level. A downside break below the $1,850 support zone may possibly spark a steady decline. In the stated case, the price could test the $1,820 support.

Oil Price Technical Analysis

Crude oil price failed to continue higher above $82.50 and started a steady decline against the US Dollar. The price traded below the $80.00 support to move into a bearish zone.

The price even traded below $78.00 and settled below the 50 hourly simple moving average. A low is formed near $76.32 and the price is now correcting higher. There was a break above the $77.50 and $78.00 resistance levels.

Besides, there was a break above a key bearish trend line with resistance near $78.50 on the hourly chart of XTI/USD. The pair traded above the 50% Fib retracement level of the recent decline from the $80.61 swing high to $76.32 low.

On the upside, the price is facing resistance near the $79.20 level. The next key resistance is near the $80.00 level and the 50 SMA, above which the price might accelerate higher towards $82.00.

On the downside, an initial support is near the $78.00 level. The first key support is near the $76.50 level, below which there is a risk of a larger decline. The next major support sits near the $75.00 level.

This forecast represents FXOpen Markets Limited opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Markets Limited products and services or as financial advice.

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

USD/JPY Analysis: The Market is Indecisive Near Its Peak Since May 1 European Currencies Testing Key Levels: Contributing Factors EUR/USD Price Forms Bullish Reversal Amid Key News GBP/USD Rate Surges to Two-Month High After Inflation News Market Analysis: GBP/USD Climbs Steadily While EUR/GBP Struggles

Latest articles

Shares

When the Chips Are Up! NVIDIA's Stratospheric Market Cap

NVIDIA is a veritable Goliath among the highly competitive realms of Silicon Valley's technological mainstays.

Its market capitalisation is now so vast that it is larger than Meta (Facebook), Tesla, Netflix, AMD, Intel, and IBM combined.

That is a remarkable

Commodities

WTI Crude Oil Price Shows Bullish Trend Ahead of OPEC Meeting

As the chart indicates, on Monday, the price of WTI crude oil rose by approximately 1%.

Reuters reports that the bullish sentiment is driven by:
→ the upcoming OPEC+ meeting scheduled for 2 June;
→ expectations of high fuel demand with the

Commodities

Can Last Week's Gold Price Rally Be Replicated?

Gold holds a particularly exceptional status among precious metals. Whilst it does have some use in the manufacturing of consumer durables and electronic products ranging from alloy compounds in wedding rings to terminals for connecting electrical cables in audio equipment,

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.