Gold Price Eyes More Gains, Crude Oil Price Faces Hurdles

Gold price started a fresh increase after it tested the $1,680 support. Crude oil price declined and tested the $62.50 support zone.

Important Takeaways for Gold and Oil

• Gold price started a major increase after a sharp decline to $1,680 against the US Dollar.
• A key bullish flag is forming with resistance near $1,790 on the hourly chart of gold.
• Crude oil price started a fresh decline from well above the $70.00 zone.
• There is a major bearish trend line forming with resistance near $66.00 on the hourly chart of XTI/USD.

Gold Price Technical Analysis

Recently, gold price saw a sharp decline below the $1,750 support against the US Dollar. The price even broke the $1,720 and $1,700 support levels.

However, the bulls were active near the $1,680 zone. A support base was formed above $1,680 and the price started a strong increase. There was a clear break above the $1,720 resistance zone.

The bulls were able to push the price above the $1,750 level and the 50 hourly simple moving average. A high was formed near $1,795 on FXOpen and the price is now consolidating gains. It traded below the $1,780 level.

However, the bulls are protecting the 23.6% Fib retracement level of the upward move from the $1,717 swing low to $1,795 high. There is also a key bullish flag forming with resistance near $1,790 on the hourly chart of gold.

If there is an upside break above the channel resistance, the price could even surpass the $1,800 resistance. The next major resistance could be near the $1,825 level.

Conversely, the price might correct lower further below $1,778. An initial support on the downside is near the $1,765 level. The first major support is near the $1,758 level. It is near the 50% Fib retracement level of the upward move from the $1,717 swing low to $1,795 high.

Oil Price Technical Analysis

Crude oil price started a major decline from well above the $70.00 level against the US Dollar. The price broke the $68.00 support to move into a bearish zone.

The price even broke the $65.00 support and the 50 hourly simple moving average. It opened the doors for more losses below the $63.50 level. The price traded as low as $62.35 and it is now correcting losses.

oil

It recovered above the 23.6% Fib retracement level of the downward move from the $67.18 swing high to $62.35 low. An immediate resistance on the upside is near the $64.20 level. The first key resistance is near the $64.80 level and the 50 hourly simple moving average.

The 50% Fib retracement level of the downward move from the $67.18 swing high to $62.35 low is also near the $64.80 zone. Besides, there is a major bearish trend line forming with resistance near $66.00 on the hourly chart of XTI/USD.

A clear break above the trend line could lead the price towards the $68.00 resistance level. An initial support on the downside is near the $63.20 level. The first major support is near the $62.50 level. If there is a downside break, the price could extend its decline towards the $60.00 level in the coming sessions.

This forecast represents FXOpen Markets Limited opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Markets Limited products and services or as financial advice.