Gold Price Remains Supported Near $1252 Vs US Dollar

Gold Price Remains Supported Near $1252 Vs US Dollar

  • – Gold price is facing hurdles near $1258 against the US Dollar, but remains supported on the downside.
  • – There is a decent bullish trend line with support at $1252 forming on the hourly chart of Gold price vs USD.
  • – Recently in the US, the Manufacturing Purchasing Managers Index (PMI) for June 2017 (Prelim) released by the Markit Economics posted a decline from 52.7 to 52.1.

 

US Manufacturing PMI

Recently in the US, the Manufacturing Purchasing Managers Index (PMI) for June 2017 (Prelim) was released by the Markit Economics. The market was positioned for a minor increase from the last reading of 52.7 to 53.0.

 

However, the actual result was on the lower side, as the preliminary reading posted a decline from 52.7 to 52.1. The report added that “U.S. private sector firms recorded a further solid expansion of business activity in June, but there was a loss of momentum since May“.

 

Overall, gold price remains supported as long as above $250 and likely to trade higher in the near term.

 

Gold Price Technical Analysis

Gold price traded nicely during the past few days and closed above the $1250 resistance against the US Dollar. There was a test of the $1258-60 zone where buyers struggled to retain the bullish momentum, and a result, a correction wave was initiated.

 

Gold Price Technical Analysis

 

A downside wave was initiated and the price moved below the 23.6% Fib retracement level of the last wave from the $1246 low to $1258 high. Furthermore, there is a decent bullish trend line with support at $1252 forming on the hourly chart of Gold price vs USD.

 

The same trend line support is near the 50% Fib retracement level of the last wave from the $1246 low to $1258 high. So, if the price continues to move down, it is likely to face buyers near the trend line support at $1252.

 

Only a break and close below $1250 would ignite further losses towards $1245. On the upside, the price needs to break the $1260 resistance in order to gain momentum towards the next major resistance, which is at $1264.

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