Gold Price Could Decline While Oil Price Aims More Upsides

FXOpen

Gold price traded to a new multi-year high towards $1,818 before correcting lower. Crude oil price is currently rising and it might continue to climb as long as it is above $40.00.

Important Takeaways for Gold and Oil

  • Gold price failed on more than two occasions to clear the $1,815 resistance against the US Dollar.
  • There was a break below a connecting bullish trend line with support near $1,800 on the hourly chart of gold.
  • Crude oil price traded to a new weekly high at $41.42 and it is currently correcting gains.
  • There is a key bullish trend line forming with support near $40.45 on the hourly chart of XTI/USD.

Gold Price Technical Analysis

Gold price gained traction above the $1,800 resistance against the US Dollar. The price traded to a new multi-year high close to $1,818 on FXOpen, but it struggled to continue higher.

The bulls made a couple of attempts to gain strength above the $1,815 level, but they failed to push the price further gains. In the past few days, there were range moves below the $1,815 and $1,818 levels.

Gold Price Technical Analysis

Recently, there was a downside correction below the $1,810 level and the 50 hourly simple moving average. Moreover, there was a break below a connecting bullish trend line with support near $1,800 on the hourly chart of gold.

The price is now trading below the $1,800 level and the recent low was formed near $1,795. On the upside, an initial resistance is near the $1,800 level. It is close to the 23.6% Fib retracement level of the recent decline from the $1,814 high to $1,795 low.

The first major resistance is near the $1,805 level or the 50 hourly simple moving average. It is close to the broken trend line and it coincides with the 50% Fib retracement level of the recent decline from the $1,814 high to $1,795 low.

The main resistance is still near the $1,815 level. A successful close above $1,815 might call for a fresh high above the $1,818 and $1,820 levels. If not, the price might decline below the $1,790 and $1,780 support levels in the near term.

Oil Price Technical Analysis

Crude oil price remained well bid above the $38.50 support zone against the US Dollar. As a result, there was an upside break above the $40.00 and $40.50 resistance levels.

The price even broke the $41.00 level and settled above the 50 hourly simple moving average. A new weekly high is formed near $41.42 and the price is currently correcting lower.

Oil Price Technical Analysis

There was a break below the $41.00 level, plus the price traded below the 23.6% Fib retracement level of the recent wave from the $39.27 low to $41.42 high. The first key support is near the $40.60 level.

There is also a key bullish trend line forming with support near $40.45 on the hourly chart of XTI/USD. The trend line is close to the 50% Fib retracement level of the recent wave from the $39.27 low to $41.42 high.

Therefore, dips might find a strong buying interest near the $40.50 and $40.40 levels. Any further losses might start a major decline towards the $38.50 support.

Conversely, oil price might continue to rise above the $41.00 and $41.50 levels. The next major hurdle for the bulls could be $42.00 or $42.20.

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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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