- Gold looks like trading near an important area, as there are crucial levels on the upside as well as on the downside.
- Disappointing Chinese CPI stalled the recovery in GOLD and created an interesting breakout pattern.
- There is a bearish trend line on the hourly chart, plus a bullish trend line supporting the price.
- US NFIB Business Optimism Index released today came in at 96.1, whereas the market was expecting 96.4.
- GOLD likely to trade higher in the near term and test the $1100 resistance area.
GOLD recently jaw dropped to trade near $1085 where it managed to gain bids and currently moving higher. There is a bullish trend line formed on the hourly chart, which is acting as a support for the price and pushing it higher.
However, there is another monster bearish trend line on the upside, which might stall gains if the price continues to move higher. The 50 hourly moving average is also positioned near the trend line to act as a hurdle.
The hourly RSI has just moved above the 50 level, which is a positive sign for buyers.
US NFIB Business Optimism Index
Today, the US NFIB Business Optimism Index that represents the Small Business Economic Trends data with quarterly surveys was released. The market was expecting a minor rise from the last reading of 96.1 to 96.4 in October 2015. However, there was no change in the index, as it remained at 96.1. The report stated that “NFIB’s Small Business Optimism Index was unchanged in October, posting no change after a rise of only 0.2 points in September and a gain of only 0.5 in August”.
There was a minor downside reaction noted in the US Dollar after the release that might help GOLD in the short term.
Overall, there is a chance of a minor spike in GOLD, but it may face a lot of sellers near $1095-$1100.