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Gold Price Correcting Higher Towards $1263 vs US Dollar

Key Points

  • Gold price after struggling near $1270 against the US Dollar moved down towards $1254.
  • There is a major bearish trend line with resistance at $1267 forming on the hourly chart of Gold price vs the USD.
  • Today in China, the Consumer Price Index for July 2017 was released by the National Bureau of Statistics of China.
  • The outcome was below the forecast, as there was an increase of 0.1%, less than the forecast of 0.2% (MoM).

Gold Price Technical Analysis

Gold price after trading towards the $1274 level against the US Dollar attracted sellers, and later moved down. The price fell below the 21 hourly simple moving average, but the downside move was prevented by the $1254-55 support area.

Gold Price Technical Analysis

The price is currently recovering and moving insider a channel with resistance near the $1261 level and the 21 hourly simple moving average.

The channel resistance also coincides with the 23.6% Fib retracement level of the last decline from the $1269.8 high to $1254.1 low. Above this, there is a major bearish trend line with resistance at $1267 forming on the hourly chart of Gold price vs the USD.

China’s CPI

Today in China, the Consumer Price Index for July 2017 was released by the National Bureau of Statistics of China. The market was positioned for an increase of 0.2% in the CPI compared with the previous month.

The actual result was below the forecast, as there was an increase of 0.1%. In terms of the yearly change, the CPI posted an increase of 1.4% in July 2017, compared with the same month a year ago. This was also lower compared with the forecast of 1.5%. The Chinese Producer Price Index, on the other hand remained stable at 5.5% in July 2017 compared with the same month a year ago.

Overall, there are chances of Gold price correcting towards $1263-66, but upsides are likely to be capped in the short term.

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