Gold Price and Crude Oil Price Could Accelerate Higher

Gold price declined recently and tested the $1,275 support area where buyers emerged. Crude oil price broke a key resistance near $53.50 and it may continue to move higher.

Important Takeaways for Gold and Oil

  • Gold price is gaining momentum and broke the $1,280 resistance against the US Dollar.
  • There is a crucial bearish trend line in place with resistance at $1,283 on the hourly chart of gold.
  • Crude oil price broke a major bearish trend line at $53.00 on the hourly chart of XTI/USD.
  • The price could accelerate higher and it may continue to rise towards the $54.50 level.

Gold Price Technical Analysis

Gold price started a major decline from the $1,295 resistance level against the US Dollar. The price declined heavily and broke the $1,292, $1,290 and $1,285 support levels.

There was even a break below the $1,280 support and a low was formed at $1,276 on FXOpen. Later, the price corrected higher and moved above the $1,280 and $1,282 resistance levels. There was also a break above the 23.6% Fib retracement level of the recent decline from the $1,295 high to $1,276 low.

Gold Price Technical Analysis

However, the price is currently facing a monster resistance near the $1,285 level and the 50 hourly simple moving average. Moreover, there is a crucial bearish trend line in place with resistance at $1,283 on the hourly chart of gold.

Above the trend line, the next resistance is near the $1,286 level and the 50% Fib retracement level of the recent decline from the $1,295 high to $1,276 low. The main resistance is near the $1,288 pivot level, above which the price is likely to accelerate towards the $1,290 and $1,295 levels.

On the downside, an initial support is at $1,280, below which the price could revisit the $1,276 support level. If there is a break below the recent low, the price may move into a bearish zone towards $1,270.

Oil Price Technical Analysis

Crude oil price dipped earlier this week from the $54.50 resistance level against the US Dollar. The price traded lower and broke the $54.00 and $53.50 support levels before buyers emerged near the $52.00 zone.

A low was formed near the $51.88 level and later the price bounced back sharply. It broke the $52.50 resistance and the 50 hourly simple moving average. Besides, there was a break above the 50% Fib retracement level of the recent decline from the $54.47 high to $51.88 low.

Oil Price Technical Analysis

More importantly, the price broke a major bearish trend line at $53.00 on the hourly chart of XTI/USD. It opened the doors for more gains and the price surpassed the $53.50 resistance.

Therefore, there are high chances of more gains above the $54.00 and $54.20 levels in the near term. If there is an upside break above $54.50, the price may even test the $55.00 level.

On the downside, an initial support is at $53.50, below which the price could test the $52.50 support and the 50 hourly simple moving average. As long as the price is trading above the $52.50 pivot level, it remains supported for more gains in the coming sessions.

Aayush Jindal

Aayush has spent over a DECADE as a financial markets contributor and observer. He specializes in market strategies and technical analysis, comes with an IT background. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the currency, commodities, Bitcoin and Ethereum markets. He is a software engineer by profession, loves blogging and observing financial markets.

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