Gold Price Climbing While Crude Oil Price Is Declining

Gold price started a decent upward move after forming a support base near $1,274. Crude oil price declined heavily and it remains at a risk of more losses below $55.00

Important Takeaways for Gold and Oil

  • Gold price started a nice upward move after testing the $1,274 support against the US Dollar.
  • There was a break above a major bearish trend line with resistance at $1,284 on the hourly chart of gold.
  • Crude oil price declined sharply and traded below the $62.00 and $60.00 support levels.
  • There was a break below a bearish flag pattern with support at $58.40 on the hourly chart of XTI/USD.

Gold Price Technical Analysis

Gold price found support near the $1,270 level and recently started an upward move against the US Dollar. The price settled above the $1,274 pivot level and extended gains above the $1,280 level.

The recent rise was positive above the $1,285 and $1,290 resistance levels. Moreover, there was a close above the $1,285 level and the 50 hourly simple moving average.

Gold Price Technical Analysis Chart

During the upward move, there was a break above a major bearish trend line with resistance at $1,284 on the hourly chart of gold. The price traded above the $1,290 level and recently traded close to the $1,294 level on FXOpen.

At the moment, the price is correcting lower towards $1,288. An initial support is near the 23.6% Fib retracement level of the recent wave from the $1,275 swing low to $1,294 high.

However, the main support is near the $1,288 level (the recent resistance area). The next support is near the $1,286 level and the 38.2% Fib retracement level of the recent wave from the $1,275 swing low to $1,294 high.

If there are more losses, the price might test the $1,285 support or the 50 hourly SMA. On the upside, if the price breaks the $1,294 and $1,295 levels, it could test the $1,300 resistance area.

Oil Price Technical Analysis

Crude oil price started a strong decline from well above the $64.00 level against the US Dollar. The price broke the key $62.40 support level to enter a bearish zone and start a downtrend.

The decline was strong as the price cleared the $60.00 support level and settled below the 50 hourly simple moving average. During the decline, there was a break below a bearish flag pattern with support at $58.40 on the hourly chart of XTI/USD.

Oil Price Technical Analysis Chart

There was a decent recovery from the $57.00 support and the price revisited the $59.50 level. However, the price struggled to clear the $59.50 and $60.00 resistance levels.

Finally, there was a fresh decline below the $58.00 and $57.00 levels. A new weekly low was formed near the $55.71 level and the price is currently trading in a bearish zone.

An initial resistance is near the $56.65 level and the 23.6% Fib retracement level of the recent decline from the $59.69 high to $55.71 low. More importantly, the previous support level is near the $57.00 level is likely to act as a crucial barrier.

Above $57.00, the main resistance is near the $57.70 level, and the 50% Fib retracement level of the recent decline from the $59.69 high to $55.71 low.

On the downside, an initial support is near the $55.70 level, below which the price is likely to accelerate below the $55.00 support level.

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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