Gold Price Could Extend Decline While Oil Price Eyes Next Break

Gold price started a strong decline after trading close to $2,075. Crude oil price is currently consolidating in a range and preparing for the next key break.

Important Takeaways for Gold and Oil

• Gold price traded to a new all-time high above $2,070 before correcting lower against the US Dollar.
• There is a key bearish trend line forming with resistance near $1,970 on the hourly chart of gold.
• Crude oil price is currently trading nicely above the $42.00 support zone.
• There is a major bullish trend line forming with support near $42.30 on the hourly chart of XTI/USD.

Gold Price Technical Analysis

Gold price extended its rise above the $2,000 level against the US Dollar. The price even broke the $2,050 level and traded to a new multi-year high above $2,070 on FXOpen.

Recently, there was a sharp downside correction below the $2,050 and $2,000 support levels. The price declined more than $1,000 and even dived below the $1,900 level, plus the 50 hourly simple moving average.

It traded as low as $1,862 and currently correcting higher. There was a break above the $1,900 and $1,920 levels. Besides, the price climbed above the 23.6% Fib retracement level of the recent dive from the $2,074 high to $1,862 low.

The price traded above the $1,950 level, but it is struggling to clear the $1,965 and $1,970 levels. There is also a key bearish trend line forming with resistance near $1,970 on the hourly chart of gold.

The trend line is close to the 50% Fib retracement level of the recent dive from the $2,074 high to $1,862 low. To start a fresh increase, gold price must clear the $1,965 and $1,970 resistance levels. In the mentioned case, it could revisit the $2,000 level.

Conversely, it might start a fresh decline below the $1,940 level and the 50 hourly SMA. The next major support is near the $1,920 level, below which the price might revisit the $1,900 support zone in the coming sessions.

Oil Price Technical Analysis

Crude oil price started a steady rise above the $40.50 and $41.20 levels against the US Dollar. The price even broke the $42.00 resistance zone to move into a positive zone.

It traded as high as $43.11 recently and settled above the 50 hourly simple moving average. At the moment, the price is consolidating gains and trading in a range below the $43.00 level.

It seems like there is a major bullish trend line forming with support near $42.30 on the hourly chart of XTI/USD. If the price breaks the trend line support, it could decline below the $42.00 support zone.

The next major support is near the $41.65 level, below which the price is likely to continue lower towards the $40.50 level in the coming sessions. Any further losses could lead it towards the $40.00 pivot level.

Conversely, oil price might continue to rise above the $43.00 and $43.10 levels. The next major hurdle for the bulls could be $43.60, above which there are chances of a sharp rise. In the mentioned case, the bulls are likely to aim a test of the main $45.00 resistance in the near term.