The recent movement in Gold prices indicated a downside correction from the high of $2,485. The price surged above the $2,425 resistance level, reaching as high as $2,480 before retracing. This pullback led to a decline below the $2,450 support level and the 50-hour simple moving average.
The bears in the market managed to push the price below the 50% Fib retracement level of the upward move from the $2,391 swing low to the $2,483 high. As a result, the price might continue to decline further, with initial support near the $2,425 level. If this level is broken, the next major support stands at $2,410. A downside break below this support could lead the price towards the $2,390 zone.
On the upside, there is a key bearish trend line forming with resistance near $2,450, along with the 50-hour simple moving average. The major resistance is located at $2,485, with the potential for the price to test $2,500 and even $2,520. Breaking above these levels could push the price towards $2,580 and possibly even $2,600.
In the case of WTI Crude Oil, the price faced resistance near $82.20 and began a downward trajectory below $81.30. The decline continued below $80.70 and the 50-hour simple moving average. It even tested the $80.40 support zone, with the potential to decline towards $79.95 if the bears remain in control.
On the upside, immediate resistance is near a major contracting triangle at $80.70 and the 50-hour simple moving average. Further resistance levels include $81.30 and a trend line at $82.20. Breaking above $82.20 could propel the price towards $82.50 and possibly higher levels such as $83.20 and $84.50.
The movement in both Gold and Oil prices suggests a period of correction and consolidation. While Gold faces downside pressure with key support levels at $2,425 and $2,410, Oil struggles to maintain momentum above resistance levels such as $82.20 and $81.30. Traders should closely monitor these price levels to identify potential entry and exit points in the market. It is essential to exercise caution and implement risk management strategies when trading commodities to mitigate potential losses and optimize profit potential.