Gold and Crude Oil Price Primed For Gains

Gold price corrected lower recently and found support near the $1,286 level. Crude oil price is following a bullish path and it may continue to rise in the short term towards $55.00.

Important Takeaways for Gold and Oil

  • Gold price found support near the $1,286 level and recently recovered above $1,290 against the US Dollar.
  • There is a major bullish trend line in place with support at $1,282 on the hourly chart of gold.
  • Crude oil price climbed higher recently and broke the $48.00 and $50.00 resistances.
  • There are two bullish trend lines formed with support near $52.20 on the hourly chart of XTI/USD.

Gold Price Technical Analysis

Gold price traded higher recently and broke the $1,295 resistance zone against the US Dollar. The price traded close to the $1,300 level before sellers appeared near the $1,297 and $1,298 resistance levels.

A high was formed near $1,297 on FXOpen and later the price declined below $1,295. Sellers pushed the price below the 50% Fib retracement level of the last leg from the $1,280 low to $1,297 high. However, the decline found a strong support near the $1,286 level.

Gold Price Technical Analysis

Besides, the 61.8% Fib retracement level of the last leg from the $1,280 low to $1,297 high also acted as a support. The price bounced back above $1,290 and the 50 hourly simple moving average.

The current price action is positive and it seems like there could be more gains above the $1,292 and $1,295 resistance levels. However, a proper break above the $1,298 resistance is needed for more gains in the near term.

On the downside, an initial support is at $1,290, followed $1,288. Moreover, there is a major bullish trend line in place with support at $1,282 on the hourly chart of gold. Overall, dips remain supported in gold and the price may soon trade towards $1,298.

Oil Price Technical Analysis

Crude oil price started a solid recovery from the $48.00 support zone against the US Dollar. The price traded above the $50.00 and $51.50 resistance levels to move into a bullish zone.

The recent upward move was positive since there was a close above the $52.00 level and the 50 hourly simple moving average. The price even broke the $52.60 resistance and traded as high as $52.99.

Oil Price Technical Analysis

The price is currently correcting lower below $52.60 and the 23.6% Fib retracement level of the recent wave from the $51.62 low to $52.99 high. However, there are many supports on the downside near the $52.40 and $52.30 levels.

There are also two bullish trend lines formed with support near $52.20 on the hourly chart of XTI/USD. The trend lines are positioned near the 50% Fib retracement level of the recent wave from the $51.62 low to $52.99 high.

Therefore, dips in the short term remain well supported above the $52.20 level. If there is a downside break below $52.20 and $52.00, the price may decline towards the $50.00 support.

On the upside, a break above the $53.00 resistance could clear the path for more gains towards the $54.20 and $54.50 levels in the near term.

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Aayush Jindal
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