Gold Price Upsides Remain Capped By $1265 Vs US Dollar

  • Gold price recently traded lower towards the $1255 support zone against the US Dollar.
  • There is an ascending channel pattern forming with resistance near $1261 on the hourly chart vs the USD.
  • Recently in China, the Trade Balance figure for July 2017 was released by the General Administration of Customs of the People’s Republic of China.
  • The outcome was above the forecast of $46.08B, as there was a trade surplus of $46.74B.

Gold Price Technical Analysis

In the last analysis, I mentioned that gold price may continue to trade higher above $1270 as long as the $1265 support zone is intact against the US Dollar.

The price traded above the $1271 high and posted a new high of $1274.140 where it faced offers and started a downside move.

The price traded lower and slowly grinded down to settle below the $1270 level, which is a short-term bearish sign.

Gold Price Hourly Chart

Gold Price Technical Analysis

The price traded as low as $1254.20 and currently attempting a correction above the $1260 level.

There is an ascending channel pattern forming with resistance near $1261 on the hourly chart vs the USD. At the moment, the price is testing the 23.6% Fib retracement level of the last decline from the $1270.84 high to $1254.20 low.

On the upside, the most important resistance is near the $1264-65 levels, which is also the 61.8% Fib retracement level of the last decline from the $1270.84 high to $1254.20 low. A bearish trend line is also positioned above $1265.

China’s Trade Balance

Recently in China, the Trade Balance figure for July 2017 was released by the General Administration of Customs of the People’s Republic of China. The forecast was lined up for a trade surplus of $46.08B, compared with the last $42.77B.

The actual result was above the forecast of $46.08B, as there was a trade surplus of $46.74B. Imports of goods and services were up by 14.7% (CNY) in July 2017 (YoY), down from the last 23.1%. Exports of goods and services were up by 11.2% (CNY) in July 2017 (YoY), down from the last 17.3%. Looking in terms of the USD, Exports of goods and services were up by 7.2% in July 2017 (YoY), which was less than the forecast of 10.9%.

Overall, gold price may rise towards $1265, but the upside move is most likely to remain capped 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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