Gold Price Rallies While Crude Oil Price Takes Hit

Gold price started a fresh increase above the $1,750 resistance zone. Crude oil price is sliding and remains at a risk of more losses below $90.

Important Takeaways for Gold and Oil

· Gold price gained pace after it cleared the $1,750 resistance against the US Dollar.

· Recently, there was a break above a key bearish trend line with resistance near $1,762 on the hourly chart of gold.

· Crude oil price started a fresh decline from the $96.00 and $96.50 resistance levels.

· There is a crucial bearish trend line forming with resistance near $91.20 on the hourly chart of XTI/USD.

Gold Price Technical Analysis

Gold price formed a base above the $1,700 level and started a fresh increase against the US Dollar. The price broke the $1,720 resistance to move into a positive zone.

There was a clear move above the $1,750 resistance and the 50 hourly simple moving average. Besides, there was a break above a key bearish trend line with resistance near $1,762 on the hourly chart of gold.

The price traded as high as $1,794 on FXOpen and the price is now consolidating gains. An immediate support on the downside is near the $1,788 level.

The price even traded below the $1,700 level and formed a low near $1,680 on FXOpen. It is now correcting losses above the $1,695 level. On the downside, an initial support is near the $1,785 level. It is near the 23.6% Fib retracement level of the upward move from the $1,754 swing low to $1,794 high.

The next major support is near the $1,774 level or the 50% Fib retracement level of the upward move from the $1,754 swing low to $1,794 high, below which there is a risk of a larger decline. In the stated case, the price could decline sharply towards the $1,750 support zone.

On the upside, the price is facing resistance near the $1,795 level. A clear upside break above the $1,795 resistance could send the price towards $1,812. The main resistance is now forming near the $1,820 level. A close above the $1,820 level could open the doors for a steady increase towards $1,840.

Oil Price Technical Analysis

Crude oil price started a fresh decline from the $96.00 resistance zone against the US Dollar. The price traded below the $92.00 support zone to move into a bearish zone.

The price even settled below the $92.00 level and the 50 hourly simple moving average. Finally, there was a move below the $90 level and the price traded as low as $87.01. It is now consolidating losses and trading above the $88.00 level.

On the upside, the price is facing resistance near the $89.00 level. It is near the 23.6% Fib retracement level of the downward move from the $95.84 swing high to $87.01 low.

The next key resistance is near the $91.40 level or the 50% Fib retracement level of the downward move from the $95.84 swing high to $87.01 low, above which the price might accelerate higher towards $93.00 or even $95.00.

On the downside, an immediate support is near the $87.00 level. The next major support is near the $85.50 level. If there is a downside break, the price might decline towards $82.20. Any more losses may perhaps open the doors for a move towards the $80.00 support zone.

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.