- Gold price after a decline below the $1260 level against the US Dollar found support.
- The price recently broke two bearish trend lines at $1262 and $1266 on the hourly chart, which is a positive sign.
- Today in China, the Retail Sales report for May 2017 released by the National Bureau of Statistics of China posted an increase of 10.7%.
Gold Price Technical Analysis
In the last analysis, I mentioned that gold price may soon test the $1284 level, which is the 1.618 extension of the last drop from the $1274 high to $1258 low.
The price did move higher and not only broke the $1284 level, but also took out the $1290 level. A new high was formed at $1296.08.
Later, the price started a correction, and moved lower by more than $30. A weekly low was formed at $1259.32 where gold buyers defended downsides.
Gold Price Hourly Chart
The price has recovered well from the $1259 low, and moved above two bearish trend lines at $1262 and $1266 on the hourly chart.
At present, the price is attempting a close above the 23.6% Fib retracement level of the last decline from the $1296 high to $1259 low.
A break and close above the $1270 resistance could take the price towards another trend line at $1274, which also coincides with the 38.2% Fib retracement level of the last decline from the $1296 high to $1259 low.
Chinese Retail Sales
Today in China, the Retail Sales report for May 2017 was released by the National Bureau of Statistics of China. The forecast was lined up for an increase of 10.6% in May 2017, less than the last 10.7%.
The actual result was better than the market forecast, as there was a rise of 10.7% in May 2017, compared with the same month a year ago. Similarly, the Chinese Industrial output was forecasted to rise by 6.3% in May 2017.
The actual was better, as there was an increase of 6.5% in the production in May 2017, compared with the same month a year ago.
Overall, gold price looks set for more gains, but the trend line resistance near $1273-1275 might play a crucial role in the near term.