Gold Price To Overtake $1280 Once Again Vs US Dollar

Gold Price To Overtake $1280 Once Again Vs US Dollar

  • – Gold price after a downside move found support near $1264 against the US Dollar.
  • – There is a major bearish trend line forming with resistance at $1280 on the hourly chart of gold versus the USD.
  • – Recently in China, the Manufacturing Purchasing Managers Index (PMI) for Oct 2017 was released by the China Federation of Logistics and Purchasing (CFLP).
  • – The outcome was below the forecast of 52.0, as there was a decline from 52.4 to 51.6.

 

China’s NBS Manufacturing PMI

Recently in China, the Manufacturing Purchasing Managers Index (PMI) for Oct 2017 was released by the China Federation of Logistics and Purchasing (CFLP). The market was positioned for a minor decline from the last reading of 52.4 to 52.0.

 

The actual result was below the forecast of 52.0, as there was a decline from 52.4 to 51.6. Looking at the official non-manufacturing PMI, the market was looking for a decline to 55.0 from 55.4 in Oct 2017. However, the official non-manufacturing PMI declined from 55.4 to 54.3.

 

The overall result was neutral and gold price is likely to remain in the positive zone above $1272 in the short term.

 

Gold Price Technical Analysis

This past week, there was a decline in Gold price from well above $1282 towards $1264 against the US Dollar. The price broke the $1270 support and settled below the 100 hourly simple moving average to trade as low as $1263.57.

 

Gold Price Technical Analysis

 

The price formed a base near $1264 and later started an upside correction. It traded above the $1272 resistance and the 50% Fib retracement level of the last decline from the $1282.45 high to $1263.57 low.

 

The price is now well above $1275 and the 100 hourly simple moving average. On the upside, buyers need to break a major bearish trend line with resistance at $1280 on the hourly chart of gold versus the USD to gain bullish traction and challenge the $1285 resistance.

 

On the downside, there is a connecting bullish trend line with support at $1275, which can be seen as a buy zone along with the 100 hourly SMA.

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