Gold has recently shown signs of recovery after finding support near the $2,352 level against the US Dollar. The price has managed to break above the $2,380 level and the 200 Simple Moving Average on the 4-hour chart. Additionally, a connecting bearish trend line with resistance at $2,388 was cleared, indicating a possible uptrend.
As the price of gold approaches the $2,400 zone, it faces immediate resistance along with the 100 Simple Moving Average on the 4-hour chart. If the price manages to surpass this resistance, the next key levels to watch out for are around $2,420 and $2,432. A clear break above these levels could lead to further upside potential, with $2,445 and $2,450 acting as potential targets for the bulls.
On the downside, a key support area is forming near the $2,365 level, coinciding with the 200 Simple Moving Average. A breach below this level may lead to more downside pressure, with the next major support standing near $2,352. Further losses could potentially push gold prices towards $2,340, signaling a bearish trend in the short term.
In contrast to gold, oil prices have been facing continued downward pressure, trading below the $75.50 mark. The bears seem to remain in control, with a potential target of breaching below the $75.00 support region in the near future.
The technical analysis of gold prices suggests a possible uptrend in the coming days, as long as the key resistance levels are breached successfully. However, traders should remain cautious of potential downside risks, especially if the price fails to hold above the support levels mentioned. On the other hand, oil prices are facing bearish pressures and may continue to decline in the short term. It is essential for investors to closely monitor market developments and key levels to make informed trading decisions.