Gold

Gold Price Faces Crucial Resistance near $1235 versus US Dollar

  • 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

Gold Price Technical Analysis

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.

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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