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Gold Price Aims Fresh Rally To $2,050, Oil Price Dives

Aayush Jindal

Aayush Jindal

Key Highlights

  • Gold price is forming a support base above the $1,975 zone.
  • It broke a key contracting triangle with resistance near $1,995 on the 4-hour chart.
  • USD/JPY corrected lower after trading as high as 137.77.
  • Crude oil prices gained bearish momentum and declined below $75.

 

Gold Price Technical Analysis

Gold price remained stable near the $1,975 zone against the US Dollar. The price formed a base above $1,980 and recently started a decent increase.

The 4-hour chart of XAU/USD indicates that the price remained well-bid above the 200 Simple Moving Average (green, 4 hours). The price gained strength after it broke the $1,992 resistance.

It even cleared a key contracting triangle with resistance near $1,995 on the same chart and the 100 Simple Moving Average (red, 4 hours). Immediate resistance near the $2,010 level.

The next major resistance is near the $2,020 level. Any more gains might send the price toward the $2,050 resistance level. Intermediate resistance might be at $2,035.

If there is no move above $2,020, the price might resume its decline. The main support seems to be forming near the $1,980 level and the 200 Simple Moving Average (green, 4 hours).

A close below the 200 Simple Moving Average (green, 4 hours) could spark more bearish moves. In the stated case, the price may perhaps decline toward the $1,950 level.

Looking at crude oil prices, there was a sharp decline below the $75 support and it seems like the bears are not done yet.

Economic Releases to Watch Today

  • UK Consumer Price Index for March 2023 (YoY) – Forecast +9.8%, versus +10.4% previous.
  • UK Core Consumer Price Index for March 2023 (YoY) – Forecast +6.0%, versus +6.2% previous.
  • Euro Zone CPI for March 2023 (YoY) - Forecast +6.9%, versus +6.9% previous.
  • Euro Zone CPI for March 2023 (MoM) - Forecast +0.9%, versus +0.9% previous.