- Gold price remained in a downtrend and traded towards $1220 against the US Dollar before starting a correction.
- The price is currently trading near a major horizontal resistance area at $1235 on the hourly chart.
- Today, the Chinese Trade Balance for April 2017 released by the General Administration of Customs of the People’s Republic of China posted a trade surplus of $38.05B, more than the forecast of $35.50B.
Gold Price Technical Analysis
This past week, there was a solid decline in Gold price, as it moved below the $1240 and $1235 support levels against the US Dollar.
Today, a new low was formed at $1220.93 from where a recovery was initiated. The price managed to move above the 23.6% Fib retracement level of the last decline from the $1257 high to $120 low.
However, the upside move was not strong, as it faced a major horizontal resistance area near $1235 on the hourly chart.
Gold Price Hourly Chart
The same resistance also coincides with the 38.2% Fib retracement level of the last decline from the $1257 high to $120 low.
Moreover, there is a bearish trend line around the same zone at $1235-36, acting as a hurdle for more upsides in Gold price.
As long as the price is below the $1236 resistance, there is a risk of a downside move in the near term towards $1220.
Chinese Trade Balance
Today in the China, the Trade Balance for April 2017 was released by the General Administration of Customs of the People’s Republic of China. The market was a trade surplus of $35.50B in April 2017, compared with the last $23.93B.
The actual result was well above the market forecast, as there was a trade surplus of $38.05B. On the other hand, the last reading was revised from $23.93B to $23.92B.
Chinese Imports of goods and services rose 11.9% in April 2017, compared with the forecast of 18%. Similarly, Chinese Exports of goods and services rose 8%, which was less than the forecast of 10.4%.
Overall, the result was positive, which helped Gold price is recovering above $1225, but it still remains at risk in the near term.