Gold price failed to break the $1,302 and $1,304 resistances, and recently declined below $1,292. Crude oil price is gaining momentum and it could trade above the $63.80 resistance.
Important Takeaways for Gold and Oil
- Gold price failed to stay above the $1,300 pivot level and declined heavily against the US Dollar.
- There is a crucial bullish trend line formed with support at $1,284 on the hourly chart of gold.
- Crude oil price climbed higher and broke the $62.40 and $63.00 resistance levels.
- There is a bullish trend line in place with support near $63.02 on the hourly chart of XTI/USD.
Gold Price Technical Analysis
Gold price started a decent recovery earlier this week from the $1,280 and $1,282 support levels against the US Dollar. The price surged above the $1,290 resistance level and climbed above the $1,300 level.
The price traded as high as $1,303 on FXOpen and later declined. It seems like the price struggled to stay above the $1,300 and $1,302 levels. As a result, there was a sharp decline below the $1,295 and $1,290 support levels.
There was even a close below the $1,290 level and the 50 hourly simple moving average. A swing low was formed near the $1,284 level and the price is currently consolidating losses.
An initial resistance is near the $1,287 level and the 23.6% Fib retracement level of the latest decline from the $1,298 high to $1,284 low. On the upside, there is a strong resistance formed near the $1,289 and $1,290 levels.
Besides, the 50% Fib retracement level of the latest decline from the $1,298 high to $1,284 low is near the $1,291 level to act as a strong resistance.
The price may struggle to move higher towards $1,292 or $1,295 in the short term. Therefore, there is a risk of a downside break below the $1,284 and $1,282 support levels in the coming sessions.
Oil Price Technical Analysis
Crude oil price formed a strong support base near the $60.80 level and recently climbed higher against the US Dollar. The price gained bullish momentum and broke the $61.50 and $62.00 resistance levels.
The upward move was strong since there was a close above the $62.20 level and the 50 hourly simple moving average. It even broke the $63.00 resistance level and traded towards the $63.65 level.
A swing high was formed at $63.66 and the price recently corrected lower below $63.20 and 50% Fib retracement level of the wave from the $62.46 low to $63.66 high.
However, the $63.00 and $62.95 levels acted as a support. Besides, the 61.8% Fib retracement level of the wave from the $62.46 low to $63.66 high provided a strong support.
More importantly, there is a bullish trend line in place with support near $63.02 on the hourly chart of XTI/USD. As long as the price is trading above the $63.00 support level, it is likely to trade higher in the near term. Below $63.00, the price could retest the $62.40 support.
On the upside, an immediate resistance is near the $63.50 level, above which oil price is likely to break the $63.66 swing high. The next important resistance is near the $64.00 level, where sellers may emerge.