- – Gold price after trading near $1260 found resistance against the US Dollar, and started declining.
- – The price broke a crucial bullish trend line with support at $1251 on the hourly chart to ignite a downside move.
- – Recently in China, the Caixin Manufacturing PMI for June 2017 posted a rise from 49.6 to 50.4.
Caixin China Manufacturing PMI
Recently in the China, the Caixin Manufacturing Purchasing Managers Index (PMI) for June 2017 was released. The market was positioned for a minor decline from the last reading of 49.6 to 49.5.
However, the actual result was on the positive side, as the Caixin Manufacturing PMI posted an expansion with reading as 50.4. The report added that “PMI climbed back into positive territory in June, with firms noting slightly stronger increases in production and new orders“.
Overall, the result was positive, but it may not hold losses below $1235 in gold price in the near term.
Gold Price Technical Analysis
Gold price had a good upside run towards the $1258 level against the US Dollar where it faced strong offers and started a downside move. The decline was such that the price broke a couple of important supports such as $1255 and $1250.
During the downside move, the price also cleared a crucial bullish trend line with support at $1251 on the hourly chart. It ignited further declines and the price also broke the $1240 support, which is a short-term bearish sign.
On the upside, there are two bearish trend lines with resistances as $1240 and $1247. The first trend line is very important near $1240 as it also coincides with the previous support area. So, if the price corrects higher, it may face sellers near $1238-1240.
The price is already below the 1.236 extension of the last wave from the $1239.66 low to $1248.21 high. So, there is a chance of it extending decline below $1235 towards the 1.618 extension of the last wave from the $1239.66 low to $1248.21 high at $1234. Any further declines could push the price towards the $1230 support. Selling rallies near $1240 may be considered as long as the price is not back in the bullish zone above $1248.Tags: Gold Price, Gold Price Analysis, Gold Price Chart, Gold Price Forecast, Gold Price Technical Analysis