Gold price remained in a bearish zone and declined below the $1,310 support area. Crude oil price is following a bearish structure below the $53.20 and $53.60 levels.
Important Takeaways for Gold and Oil
- Gold price started a major decline and traded below the $1,316 and $1,310 supports against the US Dollar.
- There is a major bearish trend line in place with resistance at $1,310 on the hourly chart of gold.
- Crude oil price traded lower and broke the $54.00 and $53.60 support levels.
- There is a declining channel formed with resistance at $53.75 on the hourly chart of XTI/USD.
Gold Price Technical Analysis
After a decent upward move, gold price faced a strong resistance near the $1,325 level against the US Dollar. The price started a downside move and broke the $1,320, $1,316 and $1,310 support levels.
The price even broke the $1,306 support level and traded close to $1,300. A low was formed at $1,302 on FXOpen and later the price started an upside correction. It moved above the $1,305 and $1,306 resistance levels.
There was a break above the 50% Fib retracement level of the recent decline from the $1,316 high to $1,302 low. However, the price faced a strong resistance near the $1,310-1,311 area and the 50 hourly simple moving average.
Moreover, the price failed near the 61.8% Fib retracement level of the recent decline from the $1,316 high to $1,302 low. Finally, there is a major bearish trend line in place with resistance at $1,310 on the hourly chart of gold.
The current price action suggests that the price is trading below the key $1,310 resistance plus the 50 hourly simple moving average. If it continues to struggle, there could be a fresh decline towards the $1,306 and $1,302 support levels.
On the other hand, an upside break above the $1,310 resistance plus the 50 hourly simple moving average might push the price towards the $1,315 level.
Oil Price Technical Analysis
Crude oil price also started a downside move after it failed to break the $56.00 resistance against the US Dollar. The price traded lower and broke the $55.00 and $54.00 support levels to move into a bearish zone.
More importantly, there was a break below the $53.60 support and the 50 hourly simple moving average. The price traded close to the $52.00 level and a low was formed at $52.08. Later, there was a minor upside correction above the $52.50 level.
There was a break above the 23.6% Fib retracement level of the recent decline from the $54.43 high to $52.08 low. However, the price seems to be struggling near the $53.00 resistance.
At the outset, there is a declining channel formed with resistance at $53.75 on the hourly chart of XTI/USD. On the upside, the most important resistance is near the $53.50 and $53.60 levels.
Besides, the 50% Fib retracement level of the recent decline from the $54.43 high to $52.08 low is near the $53.25 level to act as a resistance. Therefore, if there is an upside correction towards the $53.25 and $53.50 levels, sellers are likely to defend gains.
On the downside, an initial support is at $52.20, below which the price could test the $52.00 support. The main supports are visible near $51.50 and $51.20.
