Gold Price Struggles Near $1,880, Oil Keeps Rising

Key Highlights

  • Gold price is facing a strong resistance near $1,875 and $1,880.
  • Crude oil price is trading well above $50.00 and it seems to be eyeing more upsides.
  • EUR/USD is struggling to recover above 1.2150, while GBP/USD remained well bid.
  • USD/JPY is stuck in a major range below the 104.00 resistance.

 

Gold Price Technical Analysis

After a sharp decline, gold price found support near the $1,800 zone against the US Dollar. The price recovered higher above $1,820, but it facing many hurdles near $1,880.

The 4-hours chart of XAU/USD indicates that there is a significant resistance forming near the $1,875 and $1,880 levels. Recently, the price broke a key hurdle near the $1,865 level and the 200 simple moving average (green, 4-hours).

There was also a break above a short-term declining channel with resistance near $1,855 on the same chart. It is now facing resistance near the $1,880 level and the 100 simple moving average (red, 4-hours).

To move into a positive zone, the price must clear the $1,875 and $1,880 resistance levels. The next key resistance is near $1,900, above which the bulls are likely to gain strength.

Conversely, there is a risk of more losses below the $1,855 support. The next key support is at $1,820, below which the price could dive towards the $1,800 support.

Overall, gold price is recovering, but it must clear the $1,880 resistance zone. Looking at EUR/USD, the pair recovered from 1.2060, but it failed to surpass 1.2150. More importantly, GBP/USD made another attempt to surpass the 1.3700 resistance.

Economic Releases to Watch Today

  • ECB Interest Rate Decision - Forecast 0%, versus 0% previous.
  • US Initial Jobless Claims - Forecast 910K, versus 965K previous.