Gold Price Could Decline Further While Crude Oil Is Rising

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.

Gold Price Technical Analysis

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.

Oil Price Technical Analysis

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.

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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