Gold Price Prepares for Next Move, Oil Price Holds Strong

FXOpen

Gold price started a fresh decline and settled below $1,880. Conversely, crude oil price gained bullish momentum and it traded to a new multi-month high close to $54.00.

Important Takeaways for Gold and Oil

  • Gold price started a fresh decline below the $1,900 and $1,880 support levels against the US Dollar.
  • There is a key contracting triangle forming with resistance near $1,855 on the hourly chart of gold.
  • Crude oil price surged above the $50.00 resistance and it even climbed towards $54.00.
  • There was a break above a declining channel with resistance near $53.00 on the hourly chart of XTI/USD.

Gold Price Technical Analysis

Gold price failed to clear the $1,960 resistance level, and started a fresh decline against the US Dollar. The price broke the $1,900 and $1,880 support levels to move into a bearish zone.

The price followed a bearish path below the $1,850 level and settled below the 50 hourly simple moving average. It traded as low as $1,815 on FXOpen and recently started a short-term upside correction.

Gold Price Technical Analysis

There was a break above the $1,825 and $1,830 levels. The price recovered above the 23.6% Fib retracement level of the downward move from the $1,959 swing high to $1,815 low. However, the price is facing hurdles near $1,855 and $1,860.

There is also a key contracting triangle forming with resistance near $1,855 on the hourly chart of gold. A clear break above the triangle resistance could open the doors for a move towards the $1,880 resistance.

The next resistance could be near the 50% Fib retracement level of the downward move from the $1,959 swing high to $1,815 low at $1,887.

Conversely, the price could break the triangle support and continue lower below the $1,840 level. The first key support is near the $1,825 level. The next major support is at $1,815, below which the price might even dive below the $1,800 support level.

Oil Price Technical Analysis

Crude oil price started a strong rise after it broke the $50.00 resistance zone against the US Dollar. The price gained bullish momentum and it even surpassed the $52.00 level.

The bulls remained in action, resulting in a clear break above $52.50. Recently, there was a break above a declining channel with resistance near $53.00 on the hourly chart of XTI/USD. The price traded to a new multi-month high close to $54.00 and settled above the 50 hourly simple moving average.

Oil Price Technical Analysis

The recent high was formed near $53.85 and the price is currently correcting lower. It is testing the $53.50 level, which is close to the 23.6% Fib retracement level of the recent wave from the $52.27 swing low to $53.85 high.

If there are more downsides, the price could test the $53.20 support and the 50 hourly simple moving average. The next major support is near the 50% Fib retracement level of the recent wave from the $52.27 swing low to $53.85 high.

Any more losses could lead the price towards the $52.60 support zone. On the upside, the $53.85 and $54.00 levels are initial hurdles. A clear break above $54.00 may possibly lead the price towards the $55.00 level in the near term.

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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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