Gold

Gold Price under Pressure Vs US Dollar; $1220 Support at Risk

  • Gold price declined heavily during the past few days and broke the $1230 support area against the US Dollar.
  • The price recently traded as low as $1218.50 from where a minor recovery has started.
  • Today in China, the Caixin Services PMI for June 2017 was released.
  • The outcome was disappointing, as there was a decline from the last reading of 52.8 to 51.6.

Gold Price Technical Analysis

There were further declines in Gold below $1240 against the US Dollar. The price failed to recover recently and broke an important support area at $1230.

There were a few trend lines break at $1248 and $1240 on the hourly chart to ignite a downside wave towards $1220.

The price traded as low as $1218.50 from where a minor recovery has started.

Gold Price Hourly Chart

Gold Price Technical Analysis

The price recently managed to move above the 23.6% Fib retracement level of the last decline from the $1248 high to $1218 low.

However, there is a major bearish trend line at $1228 on the same chart, acting as a barrier for buyers and preventing further gains.

There is a chance that the price might head towards the 38.2% Fib retracement level of the last decline from the $1248 high to $1218 low at $129. However, it can be considered as a sell opportunity near $1230.

As long as the price is below $1230-38, there are possibilities of more declines back towards $1220.

Caixin China Services PMI

Today in China, the Caixin Services PMI for June 2017 was released. The forecast was lined up for a minor rise from the last reading of 52.8 to 52.9.

The actual result was disappointing, as there was a decline from the last reading of 52.8 to 51.6. Moreover, the Composite Output index also registered a decline from 51.5 to 51.1 in June 2017 to post the slowest rate of expansion in a year.

The report added that:

Latest data indicated that the slowdown in overall growth was driven by a weaker performance of the service sector. The seasonally adjusted Caixin China General Services Business Activity Index posted 51.6, down from a four-month high of 52.8 in May, to signal the second-slowest increase in activity for 13 months (after April 2017).

Overall, gold price may correct a few points towards $1230, but remains in the bearish zone for more declines 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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