Gold Price To Continue Higher Towards $1260 Vs US Dollar

Gold Price To Continue Higher Towards $1260 Vs US Dollar

  • – Gold price maintained a bullish tone and traded above $1250 against the US Dollar.
  • – There is a connecting bullish trend line with support at $1252 forming on the hourly chart of gold versus the USD.
  • – Recently in the US, the Manufacturing Purchasing Managers Index (PMI) (Prelim) for July 2017 was released by the Markit Economics.
  • – The outcome was above the forecast, as there was an increase from the last reading of 52.0 to 53.2.

 

US Manufacturing PMI

Recently in the US, the Manufacturing Purchasing Managers Index (PMI) (Prelim) for July 2017 was released by the Markit Economics. The market was positioned for no change in the PMI from the last reading of 52.0.

 

The actual result was above the forecast, as there is an expectation of an increase from the last reading of 52.0 to 53.2 in the PMI. Moreover, the US Composite Output Index posted a new month high of 54.2. The report added that:

The pickup in business activity growth was driven by a steeper increase in manufacturing production in July (‘flash’ output index at 54.3, up from 52.6 in June). Meanwhile, service providers indicated that activity growth was unchanged from June’s five-month peak.

 

Overall, there can be minor corrections in Gold price, but it remains supported above the $1250-52 levels.

 

Gold Price Technical Analysis

There were good gains in Gold price since it traded above the $1245 and $1250 level recently against the US Dollar. The upside move was decent, as there was a new monthly high formed at $1258.76 from where a correction was initiated.

 

Gold Price Technical Analysis

 

The price traded below the 23.6% Fib retracement level of the last wave from the $1242.61 low $1258.76 high. The downside move was prevented by a connecting bullish trend line with support at $1252 on the hourly chart of gold versus the USD.

 

Moreover, the 38.2% Fib retracement level of the last wave from the $1242.61 low $1258.76 high also acted as a support zone. The price is already recovering from $1253 and may continue to move higher.

 

On the upside, a retest of $1258 is most likely in the near term. Above $1258, the price may break $1260 for further gains in the near term.

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