Gold Price Is Rising But Crude Oil Price Could Extend Losses

Gold Price Is Rising But Crude Oil Price Could Extend Losses

Gold price is showing a lot of positive signs above the $1,660 resistance area. Crude oil price is currently sliding and it might continue to move down below $45.50

Important Takeaways for Gold and Oil

  • Gold price rallied recently above the $1,650 and $1,660 resistance levels against the US Dollar.
  • There is a major bullish trend line forming with support near $1,650 on the hourly chart of gold.
  • Crude oil price failed to climb above the $48.80 resistance and it is currently declining.
  • There is a key declining channel forming with resistance near $46.50 on the hourly chart of XTI/USD.

Gold Price Technical Analysis

This past week, gold price corrected lower sharply below the $1,600 support area against the US Dollar. However, the bulls were able to protect the $1,570 support area.

As a result, there was a fresh rally above the $1,600 and $1,620 resistance levels. Moreover, the price gained pace above the $1,650 resistance and the 50 hourly simple moving average. Finally, it broke the $1,660 resistance and traded to a weekly high at $1,676 on FXOpen.

Gold Price Technical Analysis

The price is currently consolidating gains and trading below $1,670. An initial support is near the $1,666 level. It is the 23.6% Fib retracement level of the recent rally from the $1,633 low to $1,676 high.

The first key support on the downside is near the $1,660 level. Moreover, there is a major bullish trend line forming with support near $1,650 on the hourly chart of gold.

An intermediate support is near the $1,655 since it is the 50% Fib retracement level of the recent rally from the $1,633 low to $1,676 high. Therefore, dips remain well supported on the downside near the $1,660 and $1,650 levels.

On the upside, an initial resistance is near the $1,675 and $1,676 levels. If gold price continues to rise, there are chances of it gaining pace above the $1,680 level. The next major hurdle is near the $1,700 level.

Oil Price Technical Analysis

Recently, crude oil price made an attempt to climb above the $48.80 and $49.00 resistance levels against the US Dollar. However, the bulls failed to gain traction and a swing high is formed near $48.69.

The price is currently declining below the $48.00 level and the 50 hourly simple moving average. Besides, there was a break below the 50% Fib retracement level of the upward move from the $43.56 low to $48.69 high.

Oil Price Technical Analysis

The price even declined below a major bullish trend line with support near $47.40 on the hourly chart of XTI/USD. An immediate support is seen near the $45.50 level.

The 61.8% Fib retracement level of the upward move from the $43.56 low to $48.69 high is also near the $45.50 level. If there is a downside break below the $45.50 support, there is a risk of more losses in the near term.

The next major support is near the $44.20 and $44.00 levels. Conversely, crude oil price might start a decent recovery wave above the $46.00 level. There is also a key declining channel forming with resistance near $46.50 on the same chart.

Therefore, a clear break above $46.00 and $46.50 is needed for a move towards the $48.50 level in the near term.

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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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