Can Gold Price Break Past $1260 Vs US Dollar?

Can Gold Price Break Past $1260 Vs US Dollar?

  • – Gold price is gaining pace above $1250 against the US Dollar, but it is struggling to break the $1260 level.
  • – There is a crucial contracting triangle forming with support at $1252 on the hourly chart of gold versus the USD.
  • – Recently in China, the hosing price index for Nov 2017 was released by the National Bureau of Statistics.
  • – The outcome was above the forecast of +5.0% as there was a rise in the index by 5.1%.

 

Caixin Hosing Price Index

Recently in China, the hosing price index for Nov 2017 was released by the National Bureau of Statistics. The market was positioned for a rise in the index by 5% compared with the last increase of 5.4%.

 

The actual result was above the forecast of +5.0% as there was a rise in the index by 5.1%. However, it was slightly less than the last increase of 5.4%. In Japan, the Merchandise Trade Balance Total for Nov 2017 was released by the Ministry of Finance. It posted a trade surplus of ¥113.4B, whereas the market was looking for a trade deficit of ¥-54.9B.

 

Overall, the result was positive for the market sentiment, but gold price has to stay above $1250 to gain upside momentum.

 

Gold Price Technical Analysis

After forming a low above the $1235 level, Gold price started an upside move against the US Dollar. The price was able to move above the $1240 and $1250 resistance levels, and closed above the 100 hourly simple moving average.

 

Gold Price Technical Analysis

 

The price traded above the $1260 level, but failed to holds gains and started a downside move. The price declined and traded below the 23.6% Fib retracement level of the last wave from the $1236.41 low to $1261.76 high.

 

At the moment, it seems like there is a crucial contracting triangle forming with support at $1252 on the hourly chart of gold versus the USD. The price is holding the $1250 support and remains supported above the 38.2% Fib retracement level of the last wave from the $1236.41 low to $1261.76 high.

 

As long as the price stays above the $1250-52 levels, there are chances of more gains in the near term above $1260.


Also published on Medium.

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