Gold Price Rallies Above $1,700, Oil Price Dips
- Gold price started a fresh increase above the $1,700 resistance.
- It broke a crucial bearish trend line with resistance near $1,650 on the 4-hours chart.
- Crude oil price failed to clear the $94 resistance zone.
- EUR/USD eyes a clear upside break above the 1.0120 resistance.
Gold Price Technical Analysis
Gold price formed a base above the $1,620 level against the US Dollar. The price formed a top near $1,729 and started a downside correction.
The 4-hours chart of XAU/USD indicates that the price gained pace above the $1,650 resistance zone. There was also a move above a crucial bearish trend line with resistance near $1,650.
It opened the doors for more gains above $1,680, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours). The bulls even pumped the price above the $1,700 resistance zone.
The price tested the $1,715 resistance zone and is currently consolidating gains. On the downside, an initial support is near the $1,700 level.
The next major support is near the $1,690 level or the 50% Fib retracement level of the upward move from the $1,664 swing low to $1,716 high, below which the price could accelerate lower. In the stated case, the price may perhaps decline towards the $1,650 level.
On the upside, the price might face sellers near the $1,715 level. The next major resistance is near the $1,725 level. Any more gains might send the price towards the $1,750 resistance level, above which gold price might revisit the $1,780 resistance.
Looking at crude oil price, there was a failed attempt to surpass the $94 resistance and the price reacted to the downside.
Economic Releases to Watch Today
- US Wholesale Inventories for Sep 2022 – Forecast +0.8%, versus +0.8% previous.