Gold is showing signs of a potential recovery as it bounces off the support zone at $2,350. The recent price action on the 4-hour chart of XAU/USD indicates a positive movement, with the price surpassing key resistance levels. The break above the connecting bearish trend line at $2,388 is a bullish signal, suggesting a possible upside momentum.
The current resistance near the $2,400 zone and the 100 Simple Moving Average at $2,380 will be crucial for the next move. A clear break above $2,400 could open the doors for further gains towards the $2,420 level. If the price manages to break above $2,420, we could see a strong rally towards the $2,445 and $2,450 resistance levels. However, a failure to break above $2,400 might result in a pullback towards the $2,365 support level and the 200 Simple Moving Average.
On the downside, if the price breaks below $2,365, we could see a retest of the $2,352 support level. Further losses might push gold prices towards $2,340. Overall, the technical outlook for gold remains positive, but the price action around key resistance levels will determine the next move.
Meanwhile, oil prices continue to face downward pressure, trading below the $75.50 level. The bears are in control, and there is a possibility of more downside below the $75.00 support region. The market sentiment remains bearish, reflecting concerns over global economic growth and the impact of the Delta variant on oil demand.
The upcoming US ADP employment data for July 2024 could provide further insights into the economic recovery and its implications for oil prices. Any significant changes in employment figures could influence market sentiment and drive volatility in oil markets.
The gold price analysis indicates a potential bullish momentum, while the oil market update suggests a bearish outlook. Traders and investors should closely monitor key technical levels and market dynamics to navigate these volatile markets effectively.