Gold Price Remains at Risk Below $1310 Vs US Dollar
- – Gold price started a downside move from the $1340 swing high against the US Dollar and traded below $1310.
- – There is a declining and contracting triangle pattern forming with resistance at $1310 on the hourly chart of gold versus the USD.
- – Recently in the US, the Net Long-Term TIC Flows report for July 2017 was released by the US Department of Treasury.
- – The outcome was below the forecast of $42.3B, as the Net Long-Term TIC Flows were $1.3B.
US Net Long-Term TIC Flows
Recently in the US, the Net Long-Term TIC Flows for July 2017 were released by the US Department of Treasury. The market was positioned for a rise in flows from the last reading of $34.4B to $42.3B.
The actual result was below the forecast of $42.3B, as the Net Long-Term TIC Flows were down to $1.3B. The total Net TIC Flows were $-7.3B, down from the last revised reading of $5.9B. , The report added that:
The sum total in July of all net foreign acquisitions of long-term securities, short-term U.S. securities, and banking flows was a monthly net TIC outflow of $7.3 billion. Of this, net foreign private inflows were $6.0 billion, and net foreign official outflows were $13.3 billion.
Overall, gold price might continue to struggle in the short term and could even break the $1300 handle.
Gold Price Technical Analysis
After an impressive run, Gold price found sellers above $1350-60 levels against the US Dollar and started correcting lower. The price declined and broke a couple of important support levels like the 100 hourly simple moving average, $1340, $1325 and $1310.
The price recently traded as low as $1304.56 and attempted a minor correction. However, it is struggling to even test the 23.6% Fib retracement level of the last decline from the $1334.21 high to $1304.56 low. There are many hurdles on the upside, and it seems like there is a declining and contracting triangle pattern forming with resistance at $1310 on the hourly chart of gold versus the USD.
The price might continue to face sellers and it is most likely to decline below the recent low of $1304.56. Above $1310, the $1315 level and the 38.2% Fib retracement level of the last decline from the $1334.21 high to $1304.56 low are key hurdles.
To sum up, gold price remains in the bearish zone and sellers might soon attempt a break of the $1300 handle in the near term.
