- Gold price remained in a bullish trend and traded towards $1250 against the US Dollar.
- The price recently broke a descending channel pattern with resistance at $1242 on the hourly chart vs the USD.
- Recently in the US, the Philadelphia Fed Manufacturing Survey Index was released for July 2017 by the Federal Reserve Bank of Philadelphia.
- The outcome was below the forecast of 24, as the index declined from 27.6 to 19.5.
Gold Price Technical Analysis
In the last analysis, I mentioned that gold buyers need to break a major trend line resistance at $1225 for further gains against the US Dollar.
The price did move above the $1225 level and surged higher. The upside move was solid as the price was able to break the $1230 and $1240 levels as well.
Gold traded as high as $1247.45 where it faced offers and currently correcting higher.
Gold Price Hourly Chart
During the recent upside, there was a break above a descending channel pattern with resistance at $1242 on the hourly chart.
The same channel trend line later acted as a support at $1242. It seems like there is a decent support forming near $1242-43. Moreover, the 50% Fib retracement level of the last wave from the $1235.31 low to $1247.45 high may also provide support at $1241.38.
All in all, there are many supports above $1240, which can be considered as a buy zone. A break above $1245-47 levels could clear the way for a move above $1250.
Philadelphia Fed Manufacturing Index
Recently in the US, the Philadelphia Fed Manufacturing Survey Index was released for July 2017 by the Federal Reserve Bank of Philadelphia. The forecast was lined up for a decline in the index from 27.6 to 24.0.
The actual result was below the forecast of 24, as the index declined from 27.6 to 19.5. As per the report, around 37% of the firms were optimistic about growth in activity in July 2017, which was lower than the last 42%. The report added that:
The shipments index decreased 16 points, while the new orders index fell 24 points. Both the delivery times and unfilled orders indexes were positive for the ninth consecutive month, suggesting longer delivery times and increases in unfilled orders.
Overall, gold price may continue to move higher towards $1247-1250 as long as it is above the $1242-40 support area.