Gold Price Turns Bearish, Crude Oil Facing Key Resistance

Gold price declined heavily recently below the $1,295 and $1,280 levels. Crude oil price is facing a strong resistance near the $64.70 level and it may continue to trade in a range for some time.

Important Takeaways for Gold and Oil

• Gold price started a major decline below the $1,295 support area against the US Dollar.
• There are two bearish trend lines formed with resistance near $1,275 and $1,279 on the hourly chart of gold.
• Crude oil price recently tested a bullish trend line with support at $63.80 on the hourly chart.
• XTI/USD failed on many occasions near the $64.70 resistance area, which is a strong hurdle for more upsides.

Gold Price Technical Analysis

Gold price started a significant decline from well above the $1,310 level against the US Dollar. The price broke the $1,300 and $1,295 support levels to move into a bearish zone.

There was a steady drop and bears manage to push the price below the $1,285 level and 50 hourly simple moving average. The price even broke the $1,280 level recently and formed a low near $1,271 on FXOpen.

It is currently consolidating gains and recently tested the 23.6% Fib retracement level of the latest decline from the $1,290 high to $1,271 low. However, there are many hurdles on the upside near the $1,275 and $1,278 levels.

There are also two bearish trend lines formed with resistance near $1,275 and $1,279 on the hourly chart of gold. The first trend line near $1,275 also coincides with the 50 hourly simple moving average.

The second trend line is close to the 38.2% Fib retracement level of the latest decline from the $1,290 high to $1,271 low. Having said that, a close above the $1,280 resistance is needed for buyers to gain bullish momentum in the near term.

If there is no break above $1,278 and $1,280, the price could decline further. An initial support is near the $1,270-1,271 area, below which gold price could accelerate towards the $1,265 level.

Oil Price Technical Analysis

Crude oil price remained in a bullish zone above the $62.00 support area against the US Dollar. The price even broke the $63.00 and $64.20 resistance levels, but it struggled to clear the $64.70 level.

The hourly chart suggests that the price failed on multiple occasions near the $64.70 and $64.75 levels. Recently, there was a downside correction below the $64.00 level and the 50 hourly simple moving average.

However, the price found support near $63.50 and it is currently following a bullish trend line with support at $63.80 on the hourly chart.

It climbed above the $64.00 level, the 38.2% Fib retracement level of the recent decline from the $64.69 high to $63.53 low, and the 50 hourly simple moving average. However, the price failed to gain strength above the $64.15 level.

The price is currently moving lower and it seems like it could test the trend lien or $63.85. If there is a break below the trend line, the price could decline towards the $63.00 support area.

On the other hand, the price could retest the $64.50 level. The main resistance is near $64.70, which may continue to act as a strong resistance for buyers in the coming days.