Gold Price Looks Poised For Gains Above $1238 Vs US Dollar

Gold Price Looks Poised For Gains Above $1238 Vs US Dollar

  • – Gold price continued to decline and moved below the $1218 support against the US Dollar.
  • – There is an ascending channel pattern with resistance at $1238 forming on the hourly chart of gold versus the USD.
  • – Today in China, the hosing price index for June 2017 was released by the National Bureau of Statistics.
  • – The outcome was neutral, as there was an increase of 10.2%, just below the last 10.4%.

 

Chinese Housing Price Index

Today in China, the hosing price index for June 2017 was released by the National Bureau of Statistics. The market was positioned for an increase of about 10% in June 2017 compared with the previous month.

 

The actual result was neutral, as there was an increase of 10.2%, just below the last 10.4%. Recently, there was a report released by the National Bureau of Statistics, titled “Steady and Sound Development Momentum of National Economy was More Visible in the First Half Year”. It highlighted a few positive points such as a year-on-year increase of 6.9 percent in the GDP by 38,149.0 billion yuan in Q1 2017, and acceleration in the Industrial Production.

 

Overall, there can be more gains in Gold price in the near term above $1238-1240 if it stays above $1220.

 

Gold Price Technical Analysis

It seems like Gold price has a good bullish run recently as it moved above $1225 and $1230 against the US Dollar. The upside move was solid, as there was a H4 clove above the $1230 resistance, suggesting buyer’s strength.

 

Gold Price Technical Analysis

 

The price is following an ascending channel pattern with resistance at $1238 on the hourly chart. At the moment, the price is trading near the channel resistance at $1238. So, there is a chance of a minor dip towards $1236-35 in the short term.

 

On the downside, an initial support is around the 38.2% Fib retracement level of the last wave from the $1232.71 low to $1238.21 high.

 

The price remains supported near buy zones at $1235 and may soon resume its upward movement. A break above $1238 could open the doors for more gains above $1240 in the near term.

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