Gold Price Could Move Higher Vs US Dollar

Gold Price Could Move Higher Vs US Dollar

  • – Gold price is trading higher and formed support around the $1,320 level against the US Dollar.
  • – There was a break above a connecting bearish trend line with resistance at $1,324 on the hourly chart of gold versus the USD.
  • – Recently in China, the Manufacturing Purchasing Managers Index (PMI) for March 2018 was released by the China Federation of Logistics and Purchasing (CFLP).
  • – The outcome was above the forecast of 50.5 as there was a rise in the PMI from 50.3 to 51.5.

China’s Manufacturing PMI

Recently in China, the Manufacturing Purchasing Managers Index (PMI) for March 2018 was released by the China Federation of Logistics and Purchasing (CFLP). The market was slated for a rise from the last reading of 50.3 to 50.5.

 

The actual result was above the forecast of 50.5 as there was a rise in the PMI from 50.3 to 51.5. Looking at the non-manufacturing PMI, there was a rise from the last reading of 54.4 to 54.6 in March 2018.

 

Overall, the market sentiment is positive for Gold and the price may continue to move higher above the $1,230 level in the near term.

 

Gold Price Technical Analysis

After a major decline, gold price found support around the $1,320 level against the US Dollar. The price started an upside move from the $1,320 swing low and it is currently trading in a positive zone above the $1,322 level.

 

Gold Price Technical Analysis US Dollar

 

The price has moved above the $1,325 level and broke a connecting bearish trend line with resistance at $1,324 on the hourly chart of gold versus the USD. At the moment, the price is testing the 23.6% Fib retracement level of the last decline from the $1,356 high to $1,320 low.

 

The price may continue to move higher as long as it is above the $1,325 level. On the upside, the next resistance is around the 50% Fib retracement level of the last decline from the $1,356 high to $1,320 low at $1,338.

 

On the downside, the broken trend line resistance near $1,324-25 may now act as a support if the price moves down from the current levels.


Also published on Medium.

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