The gold price recently experienced a downside correction after reaching the $2,485 mark. Following a rapid surge, the bears stepped in to drive the price lower. Currently, a key bearish trend line is emerging, indicating resistance near $2,450. The hourly chart of gold at FXOpen illustrates this trend, highlighting the potential for further declines.
Upon reaching a high near $2,483, the price faced a notable pullback. This led to a breach of key support levels, including $2,465 and $2,450. The bears managed to push the price below the 50-hour simple moving average, signaling a shift in momentum. As the price continues to decline, immediate support is expected near $2,425, followed by the $2,410 level.
If the downtrend persists and breaks below $2,410, gold price could see further declines towards the $2,390 support zone. On the upside, resistance levels are forming near $2,450 and $2,485, with a major hurdle at $2,500. A breakthrough above $2,500 could pave the way for a test of $2,520 and potentially $2,550. Further gains may lead to a rise towards $2,580, setting the stage for a potential move to $2,600.
Oil Price Analysis
Crude oil prices also underwent a downward trajectory after facing resistance near $82.20. The price struggled to sustain its upward momentum and retreated below $81.30. This downward movement was further accentuated by a breach of $80.70 and the 50-hour simple moving average on the WTI Crude Oil chart at FXOpen.
After testing the $80.40 support zone, the price may find additional support near $79.95. A break below this level could trigger a further decline towards $79.25 and potentially the $78.00 support zone. On the upside, immediate resistance lies near $80.70, followed by $81.30 and a strong resistance trend line at $82.20.
A decisive move above the $82.20 mark could propel the price towards $82.50, with key resistance levels at $83.20 and $84.50. Further upside momentum might lead to a rally towards $85.00, highlighting the potential for significant gains in the oil price.
Both gold and oil prices are currently navigating through crucial support and resistance levels, signaling a decisive phase in their respective trends. Traders and investors need to monitor these key levels closely to capitalize on potential opportunities in the commodity markets.