Gold Price Correcting Gains While Crude Oil Price Is Climbing

Gold Price Correcting Gains While Crude Oil Price Is Climbing

Gold price is failed to continue above $1,550 and $1,555, and recently started a downside correction. Crude oil price is currently rising and it could climb above $57.00.

Important Takeaways for Gold and Oil

  • Gold price is currently correcting lower below the $1,540 support area against the US Dollar.
  • There was a break below a major bullish trend line with support near $1,535 on the hourly chart of gold.
  • Crude oil price is showing a few positive signs and it could climb above the $57.00 resistance.
  • There is a key bullish trend line forming with support near $55.00 on the hourly chart of XTI/USD.

Gold Price Technical Analysis

Earlier this week, gold price climbed above the $1,535 and $1,540 resistance levels against the US Dollar. The price even broke the $1,550 resistance level and traded to a new yearly high at $1,555.

However, the price struggled to gain momentum above the $1,550 and $1,555 resistance levels. The last swing high was formed near $1,550 on FXOpen and the price started a fresh downside correction.

Gold Price Technical Analysis Chart

The price broke the $1,540 support and the 50 hourly simple moving average. Moreover, there was a break below a major bullish trend line with support near $1,535 on the hourly chart of gold. The price even broke the $1,525 support level.

The recent low was formed near $1,519 and the price is currently correcting higher. It tested the 23.6% Fib retracement level of the recent decline from the $1,550 high to $1,519 low.

However, there are many hurdles on the upside near the $1,535 and $1,540 levels. Moreover, the 50% Fib retracement level of the recent decline from the $1,550 high to $1,519 low is positioned near the $1,535 level to act as a resistance.

Therefore, if the price corrects higher, it could struggle near the $1,535 and $1,540 resistance levels. On the downside, an immediate support is near the $1,520 level. If there is a downside break below the $1,520 support area, the price could decline further towards the $1,505 and $1,500 support levels.

Oil Price Technical Analysis

There was a strong support formed near $53.20 in crude oil price against the US Dollar. The price started a steady rise and climbed above the $54.00 and $55.00 resistance levels.

It opened the doors for more gains above the $55.50 resistance and the 50 hourly simple moving average. Finally, the price surged above $56.00 and traded to a new weekly high at $56.73.

Oil Price Technical Analysis Chart

At the moment, the price is consolidating losses near the $56.40 level plus the 23.6% Fib retracement level of the recent wave from the $55.29 low to $56.73 high. On the downside, there are many supports near the $56.20 and $56.00 levels.

The 50% Fib retracement level of the recent wave from the $55.29 low to $56.73 high is also near the $56.00 level to act as a support. Moreover, there is a key bullish trend line forming with support near $55.00 on the hourly chart of XTI/USD.

An intermediate support is near the $55.80 level and the 50 hourly simple moving average. Therefore, a downside correction from the current levels remain supported near $56.00 and $55.80.

On the upside, a clear break above the $57.00 resistance area is likely to open the doors for more gains towards the $58.00 and $58.40 resistance levels in the near term.

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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