- – Gold price declined recently and broke the $1,340 support level against the US Dollar.
- – There is a crucial bearish trend line forming with resistance at $1,328 on the hourly chart of gold versus the USD.
- – Recently in the US, the Services Purchasing Managers Index (PMI) for Feb 2018 (Prelim) was released by Markit Economics.
- – The outcome was above the forecast of 54.0 as there was a rise in the index from 53.3 to 55.9.
US Services PMI
Recently in the US, the Services Purchasing Managers Index (PMI) for Feb 2018 (Prelim) was released by Markit Economics. The market was slated for a rise in the PMI from the last reading of 53.3 to 54.0 in Feb 2018 (Prelim).
The actual result was above the forecast of 54.0 as there was a rise in the index from 53.3 to 55.9. Moreover, the US Composite PMI index rose from the last reading of 53.8 to 55.9, which was better than the forecast of 54.4.
There was an increase in bearish pressure on gold, which resulted in a downside push in the price below $1,330.
Gold Price Technical Analysis
After trading above the $1,355 level, gold price faced sellers against the US Dollar. A major top was formed around the $1,360 level and the price declined. It moved down and broke a couple of important support levels such as $1,350 and $1,340 to settle below the 100 hourly simple moving average.
The price even moved below the $1,330 level and traded as low as $1,322. At the moment, the price is consolidating losses with an initial resistance on the upside near the 23.6% Fib retracement level of the last decline from the $1,343 high to $1,322 low.
On the upside, there is also a crucial bearish trend line forming with resistance at $1,328 on the hourly chart of gold versus the USD. However, the most important resistance is near the $1,340 level and the 100 hourly SMA.
Overall, it seems like the price continue to move down and it may perhaps break the $1,320 support level. On the upside, recoveries could be capped by the $1,330 and $1,340 resistance levels.
Also published on Medium.Tags: Gold Price, Gold Price Analysis, Gold Price Chart, Gold Price Forecast, Gold Price Technical Analysis, US Dollar