Gold Price Starts Fresh Decline, Oil Price Correcting Gains
Gold price failed to clear the $1,855 resistance and started a fresh decline. Crude oil price is correcting gains and it might test the $57.00 support zone.
Important Takeaways for Gold and Oil
- Gold price started a fresh increase, but it failed near $1,855 and $1,860 resistance levels against the US Dollar.
- There was a break below a major bullish trend line with support near $1,838 on the hourly chart of gold.
- Crude oil price traded to a new multi-month high near $58.75 before correcting lower.
- There was a break below a key bullish trend line with support near $58.20 on the hourly chart of XTI/USD.
Gold Price Technical Analysis
Gold price started a decent recovery wave from the $1,785 zone against the US Dollar. The price climbed above the $1,820 and $1,840 resistance levels.
However, the price struggled to clear the $1,855 and $1,860 resistance levels. A high was formed near $1,855 before the price started a fresh decline. There was a break below the $1,840 level and the 50 hourly simple moving average.
The price traded below the 38.2% Fib retracement level of the upward move from the $1,784 swing low to $1,855 high. There was also a break below a major bullish trend line with support near $1,838 on the hourly chart of gold.
The price is now approaching the $1,820 support zone. The 50% Fib retracement level of the upward move from the $1,784 swing low to $1,855 high is also near the $1,820 level.
If there is a downside break below the $1,820 support level, the price might continue to move down towards the $1,800 level. Any more losses could lead the price towards the $1,784 swing low.
On the upside, the price is likely to face resistance near the $1,830 level. The next major resistance is probably forming near the $1,840 level and the 50 hourly simple moving average.
Oil Price Technical Analysis
Crude oil price remained in a strong uptrend and settled well above the $55.00 resistance zone against the US Dollar. The price even cleared the $57.50 resistance level and settled well above the 50 hourly simple moving average.
It traded to a new multi-month high near $58.75 before it started a downside correction. There was a break below the $58.40 and $58.20 support levels.
The price broke the 50% Fib retracement level of the recent upward move from the $57.16 swing low to $58.75 high. There was also a break below a key bullish trend line with support near $58.20 on the hourly chart of XTI/USD.
The price is now approaching the $57.50 support. It is close to the 76.4% Fib retracement level of the recent upward move from the $57.16 swing low to $58.75 high.
The next key support is near the $57.10 level. If the price fails to stay above the $57.10 and $57.00 levels, there are chances of a decline towards the $56.00 support.
On the upside, the $58.20 level and the 50 hourly simple moving average are likely to act as hurdles. The next major resistance is near the $58.50 level, above which the price is likely to continue higher. In the stated case, the bulls could aim a test of the $60.00 level.