Gold Price Back Above $1,700, Oil Price Correcting Gains

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Gold price started a decent recovery and climbed above $1,720. Crude oil price traded to a new yearly high at $67.81 before correcting lower.

Important Takeaways for Gold and Oil

  • Gold price found support near $1,680 and started a short-term recovery against the US Dollar.
  • There was a break above a major bearish trend line at $1,700 on the hourly chart of gold.
  • Crude oil price extended its rally and it traded to a new multi-month high near $67.81.
  • Recently, there was a break below a connecting bullish trend line at $64.20 on the hourly chart of XTI/USD.

Gold Price Technical Analysis

Gold price formed a strong support base above the $1,680 level against the US Dollar. As a result, there was a decent recovery wave above the $1,700 and $1,705 resistance levels.

There was also a break above a major bearish trend line at $1,700 on the hourly chart of gold. It opened the doors for a move above the $1,720 level. The price even cleared the $1,730 level and settled above the 50 hourly simple moving average.

Gold Price Technical Analysis

A high is formed near $1,740 on FXOpen and the price is currently correcting lower. There was a break below the $1,730 level. The price is now testing the $1,720 support and the 50 hourly simple moving average.

There is also a connecting bullish trend line with support near $1,721 on the same chart. If there is a downside break below $1,720, the price could revisit $1,700. Any more losses might call for a test of the $1,680 support.

On the upside, an initial resistance is near the $1,730 level. It is close to the 50% Fib retracement level of the recent decline from the $1,740 swing high to $1,719 low.

The first major resistance is near the $1,735 level. The 76.4% Fib retracement level of the recent decline from the $1,740 swing high to $1,719 low is also near $1,735. A convincing break above $1,730 and $1,735 might open the doors for a push above the $1,740 and $1,750 levels.

Oil Price Technical Analysis

Crude oil price remains in a strong uptrend and it extended its upward move above the $65.00 resistance zone against the US Dollar. The price even cleared the $66.50 resistance level to move further into a positive zone.

Finally, there was a break above the $67.00 level. The price traded to a new multi-month high near $67.81 before starting a downside correction.

Oil Price Technical Analysis

There was a break below the $66.50 and $66.00 support levels. There was also a break below a connecting bullish trend line at $64.20 on the hourly chart of XTI/USD. The price traded as low as $63.08 and it is currently recovering.

There was a break above the 50% Fib retracement level of the recent decline from the $67.81 high to $63.08 low. However, the price seems to be facing resistance near $66.00 and the same broken trend line.

The 61.8% Fib retracement level of the recent decline from the $67.81 high to $63.08 low is also acting as a resistance. If there is an upside break above $66.00, the price could resume its increase towards $67.50 and $68.00.

If there are more downsides, the price could slide towards the $63.00 support. The next major support is near the $62.00 level.

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