- – Gold price started a downside correction from the $1350 swing high against the US Dollar.
- – There was a break below a major bullish trend line with support at $1340 on the hourly chart of gold versus the USD.
- – Recently in China, the Caixin Services PMI for Jan 2018 was released.
- – The outcome was below the forecast of 54.0 as there was a rise in the index from 53.9 to 54.7.
China’s Caixin Services PMI
Recently in China, the Caixin Services PMI for Jan 2018 was released. The market was slated for a rise in the PMI from the last reading of 53.9 to 54.0 in Jan 2018.
The actual result was below the forecast of 54.0 as there was a rise in the index from 53.9 to 54.7. This was the third consecutive month of an impressive growth in the Chinese services sector. The report added that:
January survey data signalled accelerated rates of activity growth across both the manufacturing and service sectors in China. The steeper pace of expansion was registered by services companies, which saw the most marked increase in activity since May 2012.
However, gold was not impressed, and it seems like the price may decline below the $1325-27 support in the near term.
Gold Price Technical Analysis
There were decent gains above $1350 recently in gold price against the US Dollar. However, the price started a downside wave and corrected in three waves towards $1325. It made an intermediate high at $1350 and traded below the 100 hourly simple moving average.
During the downside move, there was a break below a major bullish trend line with support at $1340 on the hourly chart of gold versus the USD. The price traded as low as $1327.36 recently and later it corrected higher. It traded above the 23.6% Fib retracement level of the last decline from the $1350 high to $1327 low.
However, the price struggled to break the $1335-36 resistance and failed near the 38.2% Fib retracement level of the last decline from the $1350 high to $1327 low.
Overall, it seems like the price may resume its downside move and could correct further lower below the $1327-25 support area in the near term.
Also published on Medium.Tags: Gold Price, Gold Price Analysis, Gold Price Chart, Gold Price Forecast, Gold Price Technical Analysis, US Dollar