Gold prices have been consolidating below the $2,530 resistance level against the US Dollar. Despite staying above $2,480, the price has struggled to make significant gains. The 4-hour chart of XAU/USD shows that the price has remained stable above both the 100 Simple Moving Average (red, 4 hours) and the 200 Simple Moving Average (green, 4 hours). An upward move within a range recently pushed the price above $2,500, but it faced strong resistance at $2,520 and $2,530. A key contracting triangle is forming with support at $2,495, with the main support level now near $2,480. A break below $2,480 could lead to further downside, with the next major support at $2,465 and the 200 Simple Moving Average (green, 4 hours). Further losses might drive gold prices towards $2,420. On the upside, immediate resistance is at $2,520, followed by a major resistance at $2,530. A clear break above $2,530 could signal more upside potential, with the next major resistance at $2,550 and a possible rally towards $2,565. Additional gains could propel Gold towards the $2,580 resistance level.
Oil Price Technical Analysis
Oil prices have declined below the $68.50 level, indicating a bearish trend with potential for further downside in the near term. The possibility of revisiting the $65.00 support level exists, as the market sentiment remains negative. The weakening demand for oil, coupled with geopolitical tensions and supply chain disruptions, contribute to the downward pressure on prices. Traders are closely monitoring the US Consumer Price Index, which is expected to show a 2.6% increase in August 2024 (YoY), down from the previous 2.9%. Any unexpected inflation data could impact oil prices significantly, as investors adjust their portfolios in response to changing economic conditions.
Market Outlook
The current market conditions for both Gold and Oil suggest a cautious approach for traders and investors. Gold’s consolidation below key resistance levels indicates uncertainty in the market sentiment, with investors waiting for a clear breakout to determine the next direction. Oil prices, on the other hand, face downward pressure due to a combination of factors affecting supply and demand dynamics. The upcoming US Consumer Price Index data release could provide further insight into the economic conditions and impact the price movements of both commodities. Traders are advised to closely monitor key support and resistance levels, as well as external factors influencing market sentiment, to make informed trading decisions in the volatile market environment.
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