Gold Price Struggling While Oil Price Rising Steadily

Aayush Jindal -

Gold price declined below the $1,880 and $1,860 support levels. Crude oil price is currently rising and it is seems like the bulls are aiming more upsides above $42.00.

Important Takeaways for Gold and Oil

  • Gold price started a strong decline below the $1,900 and $1,880 levels against the US Dollar.
  • There is a key bearish trend line forming with resistance near $1,870 on the hourly chart of gold.
  • Crude oil price stayed above the $39.00 support zone and it is currently trading above $40.00.
  • There was a break above a major bearish trend line with resistance near $40.30 on the hourly chart of XTI/USD.

Gold Price Technical Analysis

In the past few days, gold price started a steady decline from well above the $1,950 level against the US Dollar. The price broke many important supports near $1,900 to move into a bearish zone.

The decline gained pace below the $1,900 and $1,880 levels. The price even declined below $1,860 and settled well below the 50 hourly simple moving average. A low is formed near $1,848 on FXOpen and the price is currently correcting higher.

It broke the 23.6% Fib retracement level of the recent decline from the $1,917 high to $1,848 low. The price is now trading near a major hurdle at $1,870.

There is also a key bearish trend line forming with resistance near $1,870 on the hourly chart of gold. Above the trend line, the price might face hurdles near the $1,880 level or the 50% Fib retracement level of the recent decline from the $1,917 high to $1,848 low.

To move into a positive zone, the price must break the $1,880 resistance and then gain pace above the $1,900 resistance zone. Conversely, the price might resume its decline below the $1,860 and $1,850 levels in the near term. The next major support is seen near the $1,820 level.

Oil Price Technical Analysis

Crude oil price climbed higher towards the $42.00 resistance before starting a downside correction against the US Dollar. The price corrected lower below $40.00, but the bulls were able to defend the $39.00 zone.

A swing low is formed near $38.92 and the price is currently rising. It broke the $40.00 resistance area and the 50 hourly simple moving average. Besides, there was a break above the 50% Fib retracement level of the downward move from the $41.71 high to $38.92 low.

There was also a break above a major bearish trend line with resistance near $40.30 on the hourly chart of XTI/USD. The price is now testing the $40.65 resistance.

The 61.8% Fib retracement level of the downward move from the $41.71 high to $38.92 low is acting as a resistance. A clear break above the $40.65 and $40.80 levels might open the doors for a larger upward move.

The main resistance is near the $42.00 level, above which the bulls might aim a test of the $45.00 resistance in the near term.

Conversely, oil price might decline below the $40.00 support level. The main breakdown support seems to be forming near the $39.00 area. A successful close below the $39.00 level could open the doors for a larger correction towards the $37.50 and $36.00 levels in the near term.