- – Gold price recently traded close to the $1275 resistance against the US Dollar and currently correcting lower.
- – There are two important bullish trend lines formed on the hourly chart of XAU/USD at $1264-62.
- – Recently in China, the Caixin Manufacturing PMI was released, which posted a decline from 50.3 to 49.6 in May 2017.
Caixin China Manufacturing PMI
Today in China, the Caixin Manufacturing PMI was released. The market was positioned for a minor decline from the last reading of 50.3 to 50.1 in May 2017.
However, the actual result was below the forecast, as the Caixin Manufacturing PMI decreased to 49.6 and failed to post expansion in May 2017. The report highlighted that “Operating conditions faced by Chinese goods producers deteriorated for the first time in nearly a year in May. The fall in the headline index coincided with slower increases in output and new orders, while staff numbers were cut at a quicker rate”.
Overall, the result was negative, and may push gold prices lower towards the $1268-62 support zone going forward.
Gold Price Technical Analysis
It was a good week so far for Gold price, as it climbed above the $1260 and $1265 resistance levels against the US Dollar. The price recently traded as high as $1274.01 where it faced offers and now correcting lower.
The pair has already corrected 50% Fib retracement level of the last wave from the $1259.49 low to $1274.01 high. However, it remains supported on the downside above $1260. There are two important bullish trend lines formed on the hourly chart of XAU/USD at $1264-62. So, if there is a decline further, these trend lines and the horizontal support around $1265 may protect losses in the near term.
The $1265 support also coincides with the 61.8% Fib retracement level of the last wave from the $1259.49 low to $1274.01 high, and the 100 hourly simple moving average. So, it may play as a major barrier for sellers for a move towards $1250. Buying dips remains a good option as long as the $1260 support holds. On the upside, a break above $1275 could take the price towards $1282 or even $1285.Tags: Gold Price, Gold Price Chart, Gold Price Technical Analysis, US Dollar