Gold Price Breaks Key Resistance at $1245 Vs US Dollar

  • Gold price was under a lot of pressure recently until it found support at $1240 against the US Dollar.
  • The price recently traded higher and breached a bearish trendline at $1245 on the hourly chart.
  • Recently in the US, the Existing Home Sales for May 2017 was released by the National Association of Realtors.
  • The outcome was positive, as there was a rise of 1.1% in sales, more than the forecast of -0.5%.

Gold Price Technical Analysis

During the past few days, there was an increase in selling pressure for Gold, as the price move from $1280 to well below $1250 against the US Dollar.

During the decline, the price broke a few important supports like $1268 and $1256.

A low was formed at $1240.84 where buyers appeared and protected further declines. The price started correcting higher, and moved above a bearish trendline at $1245 on the hourly chart.

Gold Price Hourly Chart

Gold Price Technical Analysis

The price also managed to break the 23.6% Fib retracement level of the last decline from the $1281 high to $1240 low.

It is a positive sign and suggest more gains above $1253 in the near term. The next major hurdle on the upside is near $1256. It was a support earlier and may prevent gains above $1256-58.

The $1256-58 area also coincides with the 38.2% Fib retracement level of the last decline from the $1281 high to $1240 low. Buying dips looks like a good option near $1250-1248 in the short term.

US Existing Home Sales

Recently in the US, the Existing Home Sales for May 2017 was released by the National Association of Realtors. The forecast was lined up for a decrease of 0.5% in sales in May 2017, compared with the previous month.

The actual result was positive, as there was a rise of 1.1% in sales to a seasonally adjusted annual rate of 5.62 million. It was also much better than the last revised reading of -2.5%.

Commenting on the same, the NAR chief economist, Lawrence Yun, stated:

The job market in most of the country is healthy and the recent downward trend in mortgage rates continues to keep buyer interest at a robust level. Those able to close on a home last month are probably feeling both happy and relieved.

Overall, gold price is looking good, ignoring the US Dollar strength and looks set for more gains above $1253 in the near term.

About Aayush Jindal 109 Articles
With over 10 years of experience and still counting, Aayush posses great technical and fundamental analysis skills in the Forex, Cryptocurrency and Financial Markets. His Analysis are well-know and famous for engaging with viewers easily. He is from IT background with a lot of passion in the Forex and Cryptocurrency Arena.


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