Gold Price Extends Decline, Oil Price Trimming Gains

Gold price struggled to clear $1,850 and started a fresh decline below $1,800. Crude oil price traded to a new multi-month high at $62.21 before starting a downside correction.

Important Takeaways for Gold and Oil

• Gold price failed to gain momentum and declined below $1,800 against the US Dollar.
• There is a key bearish trend line forming with resistance near $1,795 on the hourly chart of gold.
• Crude oil price traded to a new multi-month high near $62.21 before correcting lower.
• There was a break below a major bullish trend line with support near $61.20 on the hourly chart of XTI/USD.

Gold Price Technical Analysis

Gold price failed to clear the $1,850 and $1,855 resistance levels against the US Dollar. As a result, there was a fresh decline below the $1,825 and $1,820 support levels.

The price gained bearish momentum below the $1,800 support and it even settled well below the 50 hourly simple moving average. It traded as low as $1,760 on FXOpen and it is currently consolidating losses.

An initial resistance on the upside is near the $1,775 level. It is close to the 23.6% Fib retracement level of the recent decline from the $1,826 swing high to $1,760 low.

The first major resistance is near the $1,780 level or the 50 hourly simple moving average. The next major resistance is near the $1,795 level. There is also a key bearish trend line forming with resistance near $1,795 on the hourly chart of gold.

The trend line resistance is close to the 50% Fib retracement level of the recent decline from the $1,826 swing high to $1,760 low. Therefore, the price might struggle to clear the $1,795 and $1,800 resistance levels in the near term.

On the downside, the first major support is near the $1,760 level. The next major support is near the $1,750 level. Any more losses might call for a move towards the $1,720 support level.

Oil Price Technical Analysis

Crude oil price remained in a strong uptrend and it gained pace above the $58.00 resistance zone against the US Dollar. The price even cleared the $60.00 resistance level and spiked above $62.00.

A new multi-month high was formed near $62.21 before the price started a downside correction. There was a break below the $61.50 support level and the 50 hourly simple moving average.

There was also a break below a major bullish trend line with support near $61.20 on the hourly chart of XTI/USD. The price even broke the last swing low at $59.52. It is now testing the 1.236 Fib extension level of the upward move from the $59.52 swing low to $62.21 high.

If the price fails to stay above the $58.50 support level, there are chances of more downsides. The next key support is near the $57.80 level.

The 1.618 Fib extension level of the upward move from the $59.52 swing low to $62.21 high is also near $57.80. Any more losses could lead the price towards the $55.00 support zone.

On the upside, an initial resistance is near the $59.50 level. The main resistance is now forming near the $60.50 level and the 50 hourly simple moving average, above which oil price might start a fresh increase.