Gold prices recently approached the $4,800 mark before entering a corrective phase, while WTI crude oil continues to build upward momentum, with potential to push towards the $110 level.
Key Points to Watch
- Gold advanced strongly towards $4,800 before facing a pullback against the US dollar.
- A notable bullish trend line is emerging, offering support near $4,630 on the hourly chart.
- WTI crude has broken above the key $100 resistance zone, signalling continued strength.
- A descending trend line around $97.00 has been breached, reinforcing the bullish outlook for oil.
Gold Technical Outlook
On the hourly chart, gold managed to rally from levels above $4,500 and briefly approached $4,800 before sellers stepped in. This triggered a correction, pushing prices below $4,750 and $4,700, with the market also slipping under the 50-hour moving average. Momentum indicators weakened, as reflected by the RSI dropping below the neutral 50 level. The decline extended past the 38.2% Fibonacci retracement of the move from $4,351 to $4,800.
Despite this pullback, buying interest remains evident above $4,575, with the 50% Fibonacci level acting as additional support. A rising trend line near $4,630 further strengthens this support zone.
On the upside, immediate resistance is seen around $4,695, followed by the key $4,750 level. A sustained move above this barrier could open the way towards $4,800 and potentially $4,880.
If bullish momentum fails to return, gold may continue to drift lower. Initial support lies near $4,630, while a break below $4,520 could accelerate losses towards $4,350.
WTI Crude Oil Technical Outlook
WTI crude oil has been trending higher on the hourly timeframe, gaining strength after moving above $96.40. Buyers pushed prices beyond the 50-hour moving average, while momentum indicators signalled strong bullish pressure.
A key technical development was the breakout above a descending trend line near $97.00, which helped fuel the rally towards the $105.85 region. The market is now consolidating these gains after a modest pullback below $103, corresponding to the 23.6% Fibonacci retracement of the move from $92.78 to $105.86.
If upward momentum resumes, resistance may emerge around $105.85. A breakout above $106.85 could pave the way towards $108, with $110 acting as the next major target. Further gains could extend towards $112.
On the downside, a deeper correction could bring prices back towards $100.85. Stronger support is located near $99.30, where the 50% Fibonacci level and the 50-hour moving average converge. A break below this zone could expose the market to further declines towards $96.40 and potentially $92.80.
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