Gold price has witnessed a solid increase, surpassing the $2,320 mark against the US Dollar. The price action reveals a bullish trend as it broke a key descending channel with resistance at $2,315. The bulls were able to push the price above the $2,345 level and the 50-hour simple moving average, reaching as high as $2,358. Currently, XAU/USD is consolidating gains near the $2,355 zone, with the RSI above 70. However, the price faces initial support near the 23.6% Fib retracement level of the upward move and the first major support near the $2,335 zone. If the price breaks below the $2,335 support, it may decline towards $2,320 and the 50-hour simple moving average. On the upside, immediate resistance is near the $2,360 level, with the next major resistance at $2,372. An upside break above $2,372 could propel Gold price towards $2,385, and further gains may lead to a test of the $2,400 level.
WTI Crude Oil price has seen a recovery from the $76.70 support zone, surging above $77.75 and the 50-hour simple moving average. The bulls managed to break above the 50% Fib retracement level, along with a connecting bearish trendline, signaling a positive bias. However, the price faces resistance near $79.50, close to the 61.8% Fib retracement level. A clear move above $79.50 could pave the way for a test of the $81.20 resistance, with further gains potentially targeting the $83.00 level. Conversely, a failure to break above $79.50 resistance could lead to a fresh decline. Immediate support lies near $78.55, followed by a major support at $77.75. If the price breaks below these levels, it could decline towards $76.70, opening the doors for a move towards the $75.00 support zone.
Both Gold and Oil prices are exhibiting interesting price actions. Gold price is currently consolidating gains after a strong increase, while Oil price is struggling near key resistance levels. Traders should closely monitor the support and resistance levels mentioned in the technical analysis to make informed trading decisions. As always, it is crucial to use risk management strategies and stay updated on market developments to navigate the volatile commodity markets successfully.