Gold Price Testing Crucial Support of $1264 Vs US Dollar

Gold Price Testing Crucial Support of $1264 Vs US Dollar

  • – Gold price remained in an uptrend and traded towards $1275 against the US Dollar.
  • – There is a major bullish trend line with support at $1264 forming on the hourly chart of gold versus the USD.
  • – Recently in the US, the Institute for Supply Management (ISM) Manufacturing Index for July 2017 was published.
  • – The outcome was below the forecast, as there was a decrease from the last reading of 57.8 to 56.3.

 

US ISM Manufacturing Index

Recently in the US, the Institute for Supply Management (ISM) Manufacturing Index for July 2017 was published. The market was positioned for a minor decline from the last reading of 57.8 to 56.5.

 

The actual result was below the forecast, as there was a decrease from the last reading of 57.8 to 56.3. The New Orders Index was down by around 3.1 percentage points to 60.4 percent, and the Production Index also posted a decline of a 1.8 percentage point to 60.6. The report added that:

The Employment Index registered 55.2 percent, a decrease of 2 percentage points from the June reading of 57.2 percent. The Supplier Deliveries Index registered 55.4 percent, a 1.6 percentage point decrease from the June reading of 57 percent. The Inventories Index registered 50 percent, an increase of 1 percentage point from the June reading of 49 percent.

 

Overall, gold price dips remains supported as long as the $1264 support is intact in the near term.

 

Gold Price Technical Analysis

There were continuous gains in Gold price as it moved above the $1265 resistance against the US Dollar. The upside move was gained traction, as the price was also able to surpass $1270 for a high near $1273.92.

 

Gold Price Technical Analysis

 

The price later started a correction from a bearish trend line at $1274 on the hourly chart and traded below the 50% Fib retracement level of the last wave from the $1261.51 low $1273.92 high. On the downside, there is a major bullish trend line with support at $1264 forming on the hourly chart of gold versus the USD.

 

At the moment, the price is finding support near the 76.4% Fib retracement level of the last wave from the $1261.51 low $1273.92 high and the 100 hourly simple moving average.

 

Overall, it seems like the $1264-62 area is a major support and can be considered as a buy zone in the near term.

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