Gold price started a solid upward move from the $1,238 low and broke the $1,260 resistance. Crude oil price remains in a downtrend and it could decline below $43.00 in the near term.

Important Takeaways for Gold and Oil

• Gold price gained a lot of bullish momentum above the $1,270 resistance against the US Dollar.
• There is a major ascending channel with support at $1,269 on the hourly chart of gold.
• Crude oil price is struggling to move past the $46.00 and $47.00 resistances.
• There is a key bearish trend line formed with resistance at $46.20 on the hourly chart of XTI/USD.

Gold Price Technical Analysis

Gold price remained a significant uptrend and it started a solid upward move from the $1,238 swing low against the US Dollar. The price broke the $1,240 and $1,255 resistance levels to enter a medium term uptrend.

There was a proper close above the $1,260 resistance and the 50 hourly simple moving average. The price climbed above the $1,270 and $1,275 resistance levels. A high was formed at $1,279 and later the price corrected lower.

Sellers pushed the price below the $1,270 level and the 38.2% Fib retracement level of the last wave from the $1,253 low to $1,279 high. However, the price found support near the $1,265 level.

More importantly, there is a major ascending channel formed with support at $1,269 on the same chart. Besides, the 50% Fib retracement level of the last wave from the $1,253 low to $1,279 high. Should there be a downside break below the $1,266 and $1,265 support levels, there could be a strong downward move towards the $1,260 support.

On the upside, there is a major resistance at $1,279-$1,280, above which the price could move towards the $1,285 and $1,290. The next major resistance is near the $1,300 level.

Oil Price Technical Analysis

Crude oil price declined further below the $47.00 and $45.00 support levels against the US Dollar. The price even broke the $44.00 support level and traded towards the $42.00 level.

A low was formed at $42.11 and later started an upward move. The price jumped above the $45.00 and $46.00 resistance levels. However, the price struggled to clear the $47.00 barrier. Besides, there is a key bearish trend line formed with resistance at $46.20 on the hourly chart of XTI/USD.

The price is moving lower and it already broke the $45.00 support plus the 38.2% Fib retracement level of the recent wave from the $42.11 low to $47.01 high. If the price continues to move down, there could be more losses below the $43.00 support.

An intermediate support is near the $43.20 and the 76.4% Fib retracement level of the recent wave from the $42.11 low to $47.01 high. Any further losses are likely to lead the price towards the $42.00 and $40.00 levels.

The overall market sentiment is still bearish for crude oil and it seems like there could be a downside extension below the $44.00 and $43.00 support levels. On the upside, the main barrier for buyers is near the $46.00 and $47.00 levels, above which there could be the start of an upward move.

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