- Gold price gained momentum and moved towards $1272 against the US Dollar.
- There is a crucial bullish trend line with support at $1264 forming on the hourly chart vs the USD.
- Recently in China, the Caixin Manufacturing PMI for July 2017 was released.
- The outcome was above the forecast of 50.4, as the index registered an increase to 51.1.
Gold Price Technical Analysis
In the last analysis, I mentioned that if gold price breaks the $1245-47 levels, there is a strong chance of a move above $1250 against the US Dollar.
The price did move above $1247 and even climbed above $1250. The move was such that the price was able to surge above the $1260 resistance as well.
A new weekly high was formed near $1271.11 where sellers appeared and defended further gains in the short term.
Gold Price Hourly Chart
The price corrected lower below the 23.6% Fib retracement level of the last wave from the $1258.18 low to $1271.11 high.
However, the downside move was prevented by the $1266 support and the 38.2% Fib retracement level of the last wave from the $1258.18 low to $1271.11 high.
The price is moving back higher and following an ascending channel with support at $1268. Moreover, there is a crucial bullish trend line with support at $1264 forming on the hourly chart vs the USD.
All in all, the price may continue to move higher above $1270 as long as the $1265 support zone is intact.
Caixin China Manufacturing PMI
Recently in China, the Caixin Manufacturing PMI for July 2017 was released. The forecast was lined up for no change in the PMI from the last reading of 50.4.
The actual result was above the forecast of 50.4, as the index registered an increase to 51.1. Both output and new orders were higher in July 2017 and registered best levels of the past five months. The report added that:
Companies maintained a relatively cautious stance towards employment, with staff numbers falling again in July. This coincided with a subdued level of confidence towards the business outlook, with optimism towards the year ahead dipping to an 11-month low.
Overall, gold price may continue to move higher and there is a high possibility of it breaking the $1272 resistance in the near term.