- Gold price moved higher from the $1247 swing low against the US Dollar, and gained pace.
- The price is currently following a nice bullish trend line with support at $1258 on the hourly chart.
- Today, the US Manufacturing Purchasing Managers Index (PMI) for May 2017 (Prelim) released by the Markit Economics posted a decline from 52.8 to 52.5.
Gold Price Technical Analysis
In the last analysis, I highlighted a bullish trend line around the $1244 level in gold price vs the US Dollar chart. It acted as a major support and pushed the price higher.
The price started an uptrend from the $1247 swing low, and climbed above the $1260 level.
However, the price was seen struggling near a major resistance just below $1265. It is preventing gains, and already pushed the price lower once.
The price moved below the 23.6% Fib retracement level of the last wave from the $1253 low to $1263 high.
Gold Price Hourly Chart
However, the downside move found support near a nice bullish trend line with support at $1258 on the hourly chart.
Moreover, the 50% Fib retracement level of the last wave from the $1253 low to $1263 high acted as a support.
The price bounced sharply and now moving again towards the $1264-65 resistance. A break above is needed to set the trend for a move towards $1270 or even $1280.
US Manufacturing and Services PMI
Today in the US, the Manufacturing Purchasing Managers Index (PMI) for May 2017 (Prelim) was released by the Markit Economics. The market was positioned for an increase from the last reading of 52.8 to 53.0.
The actual result was lower than the market forecast, as there was a decline in the PMI to 52.5. On the other hand, the Services Purchasing Managers Index for May 2017 (Prelim) posted a rise from 53.1 to 54.0.
Commenting on the Manufacturing PMI, the Chief Business Economist at IHS Markit, Chris Williamson, stated:
Growth of US business activity gained a little momentum for a second successive month in May, but the upturn still looks somewhat underwhelming.
Overall, there can be more gains in gold price once buyers break $1264 for a move towards $1270.