Gold Price Consolidates Losses While Oil Price Gains Traction

FXOpen

Gold price declined heavily below $1,850 and tested the $1,800 support zone. Conversely, crude oil price gained bullish momentum above $42.00 and it even traded to a new multi-month high.

Important Takeaways for Gold and Oil

  • Gold price declined below the $1,850 and $1,835 support levels against the US Dollar.
  • There is a key contracting triangle forming with resistance near $1,812 on the hourly chart of gold.
  • Crude oil price is currently correcting gains after trading close to the $46.50 level.
  • There is a major contracting triangle forming with resistance near $45.35 on the hourly chart of XTI/USD.

Gold Price Technical Analysis

Gold price started a fresh decline after trading as high as $1,879 against the US Dollar. The price broke the $1,850 and $1,835 support levels to move into a bearish zone.

The price even broke the $1,825 support level and settled well below the 50 hourly simple moving average. It traded as low as $1,850 on FXOpen and recently started consolidating losses.

Gold Price Technical Analysis

There was no major upward move and the price remained well below the 23.6% Fib retracement level of the recent drop from the $1,879 swing high to $1,800 low. Moreover, there is a key contracting triangle forming with resistance near $1,812 on the hourly chart of gold.

If there is an upside break above the triangle resistance, the price could recover above the $1,820 level. The next major resistance is near the $1,840 level.

The 50% Fib retracement level of the recent drop from the $1,879 swing high to $1,800 low is positioned near the $1,840 level to act as a major hurdle for the bulls. If there are more gains, the price could test the $1,865 resistance.

Conversely, the price could start a fresh decline below the $1,805 and $1,800 support levels. The next major support is near $1,785, below which there is a risk of a sharp decline towards $1,760. Any further losses could lead the price towards the $1,750 support level in the coming sessions.

Oil Price Technical Analysis

Crude oil price started a strong increase from the $40.00 support zone against the US Dollar. The price broke many hurdles near $42.00 and $43.50 to move further into a positive zone.

There was a steady rise above the $45.00 level and the 50 hourly simple moving average. The price even spiked above the $46.00 level and traded to a new 8-month high at $46.27. Recently, there was a downside correction below the $46.00 level.

Oil Price Technical Analysisgold

There was a break below the $45.50 level, but the price found support near $45.00. A low is formed near $44.76 and the price is currently trading in a range. An initial resistance is near the $45.10 level.

The 23.6% Fib retracement level of the recent decline from the $46.27 high to $44.76 low is also near $45.12. There is also a major contracting triangle forming with resistance near $45.35 on the hourly chart of XTI/USD.

The 50% Fib retracement level of the recent decline from the $46.27 high to $44.76 low sits at $45.52. Therefore, a clear break above the triangle resistance and then $45.50 could open the doors for a larger increase in the coming sessions.

The first major resistance is near the $46.00 level, above which it could even surpass $46.50. On the downside, there is a key support forming near the $45.00 zone. A break below the triangle support could lead the price towards the $44.00 support.

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