Gold Price Under Pressure Below $1280 Vs US Dollar

Gold Price Under Pressure Below $1280 Vs US Dollar

  • – Gold price moved down from the $1290 swing high against the US Dollar and traded below $1280.
  • – There was a break below a major ascending channel with support at $1284 on the hourly chart of gold versus the USD.
  • – Recently in China, the Manufacturing Purchasing Managers Index (PMI) for Sep 2017 was released by the China Federation of Logistics and Purchasing (CFLP).
  • – The outcome was above the forecast of 51.5, as there was a rise from 51.7 to 52.4.

 

China’s NBS Manufacturing PMI

Recently in China, the Manufacturing Purchasing Managers Index (PMI) for Sep 2017 was released by the China Federation of Logistics and Purchasing (CFLP). The market was positioned for a decline in the PMI from the last reading of 51.7 to 51.5.

 

The actual result was above the forecast of 51.5, as there was a rise from 51.7 to 52.4. Similarly, the official non-manufacturing PMI also posted a rise from the last reading of 53.4 to 55.4 in Sep 2017.

 

The overall result was positive, but there was no change in the buying sentiment for Gold, as its price remained below the $1280 resistance area.

 

Gold Price Technical Analysis

There was a downside move in Gold price from the $1310 high against the US Dollar. The price faced a lot of selling pressure, and as a result, there was a break of the $1300 and $1290 support levels. The downside move was such that the price even failed to hold the $1280 support and the 100 hourly simple moving average.

 

Gold Price Technical Analysis

 

The price attempted a correction from the $1280 low once, but failed to break the $1290 resistance. Later, there was a break below a major ascending channel with support at $1284 on the hourly chart of gold versus the USD.

 

The price declined and traded as low as $1273.96 and currently attempting a recovery.  An initial resistance is around the 23.6% Fib retracement level of the last decline from the $1290.31 high to $1273.96 low.

 

There is also a bearish trend line near $1276. Overall, the price remains in the bearish territory with crucial resistances near $1276, $1280 and $1290.

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