Gold Price Climbing While Crude Oil Price Is Declining

FXOpen

Gold price started a decent upward move after forming a support base near $1,274. Crude oil price declined heavily and it remains at a risk of more losses below $55.00

Important Takeaways for Gold and Oil

  • Gold price started a nice upward move after testing the $1,274 support against the US Dollar.
  • There was a break above a major bearish trend line with resistance at $1,284 on the hourly chart of gold.
  • Crude oil price declined sharply and traded below the $62.00 and $60.00 support levels.
  • There was a break below a bearish flag pattern with support at $58.40 on the hourly chart of XTI/USD.

Gold Price Technical Analysis

Gold price found support near the $1,270 level and recently started an upward move against the US Dollar. The price settled above the $1,274 pivot level and extended gains above the $1,280 level.

The recent rise was positive above the $1,285 and $1,290 resistance levels. Moreover, there was a close above the $1,285 level and the 50 hourly simple moving average.

Gold Price Technical Analysis Chart

During the upward move, there was a break above a major bearish trend line with resistance at $1,284 on the hourly chart of gold. The price traded above the $1,290 level and recently traded close to the $1,294 level on FXOpen.

At the moment, the price is correcting lower towards $1,288. An initial support is near the 23.6% Fib retracement level of the recent wave from the $1,275 swing low to $1,294 high.

However, the main support is near the $1,288 level (the recent resistance area). The next support is near the $1,286 level and the 38.2% Fib retracement level of the recent wave from the $1,275 swing low to $1,294 high.

If there are more losses, the price might test the $1,285 support or the 50 hourly SMA. On the upside, if the price breaks the $1,294 and $1,295 levels, it could test the $1,300 resistance area.

Oil Price Technical Analysis

Crude oil price started a strong decline from well above the $64.00 level against the US Dollar. The price broke the key $62.40 support level to enter a bearish zone and start a downtrend.

The decline was strong as the price cleared the $60.00 support level and settled below the 50 hourly simple moving average. During the decline, there was a break below a bearish flag pattern with support at $58.40 on the hourly chart of XTI/USD.

Oil Price Technical Analysis Chart

There was a decent recovery from the $57.00 support and the price revisited the $59.50 level. However, the price struggled to clear the $59.50 and $60.00 resistance levels.

Finally, there was a fresh decline below the $58.00 and $57.00 levels. A new weekly low was formed near the $55.71 level and the price is currently trading in a bearish zone.

An initial resistance is near the $56.65 level and the 23.6% Fib retracement level of the recent decline from the $59.69 high to $55.71 low. More importantly, the previous support level is near the $57.00 level is likely to act as a crucial barrier.

Above $57.00, the main resistance is near the $57.70 level, and the 50% Fib retracement level of the recent decline from the $59.69 high to $55.71 low.

On the downside, an initial support is near the $55.70 level, below which the price is likely to accelerate below the $55.00 support level.

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.

Stay ahead of the market!

Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.

Latest articles

Analysis of XAU/USD: Gold Price Sets Historical Record
Commodities

Analysis of XAU/USD: Gold Price Sets Historical Record

As the XAU/USD chart shows, on 16th July, the gold price rose above $2460 for the first time in history. The bullish sentiment is driven by:

→ Anticipation of Fed rate cuts, as the appeal of non-yielding bullion generally increases

US Banks Set a Bullish Tone at the Start of Earnings Season
Shares

US Banks Set a Bullish Tone at the Start of Earnings Season

Company earnings reports for the second quarter will be a crucial driver of stock market movements in the coming weeks. Traditionally, the largest banks kick off the earnings season, and their performance indicators today are setting a bullish tone.

For

The Dollar Corrected After a Sharp Decline. Will the Uptrend Resume?
Forex Analysis

The Dollar Corrected After a Sharp Decline. Will the Uptrend Resume?

A sustained decline in the core consumer price index in the US contributed to a sharp pullback in the American currency. The GBP/USD currency pair is trading near the psychological level of 1.3000, EUR/USD buyers are attempting

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.