Gold Price Remains Supported above $1,338 Vs US Dollar

Gold Price Remains Supported above $1,338 Vs US Dollar

  • – Gold price corrected lower recently after trading as high as $1,365 against the US Dollar.
  • – There is a key bullish trend line forming with support at $1,338 on the hourly chart of gold versus the USD.
  • – Recently in China, the new loans report for March 2018 was released by People’s Bank of China.
  • – The outcome was below the forecast of 1,200.0B as the new loans figure came in at 1,120.0B.

China’s New Loans

Recently in China, the new loans report for March 2018 was released by People’s Bank of China. The market was slated for a reading of 1,120.0B compared with the last reading of 839.3B.

 

The actual result was below the forecast of 1,200.0B as the new loans figure came in at 1,120.0B. However, the result was positive when compared with the last reading of 839.3B. The M2 Money Supply in March 2018 rose 8.2% (YoY), which was less than the forecast of +8.9% and also less than the last +8.8%.

 

Gold price may consolidate in the short term before it makes the next move above the $1,350 level in the near term.

 

Gold Price Technical Analysis

There was a decent upside move in gold price this past week as it moved above the $1,360 level against the US Dollar. The price traded as high as $1,365 before a downside correction was initiated. It declined and traded below the $1,350 level.

 

Gold Price Technical Analysis

 

There was even a spike down below the 100 hourly simple moving average, but the downside move was contained by the $1,332 support. There is also a key bullish trend line forming with current support at $1,338 on the hourly chart of gold versus the USD.

 

The price is now back above the 100 hourly SMA and broke the 38.2% Fib retracement level of the last decline from the $1,365 high to $1,333 low. Buyers need to gather pace above $1,350 and the 50% Fib retracement level of the last decline from the $1,365 high to $1,333 low for further gains.

 

On the downside, the price remains supported above the $1,338 level. A close below $1,338 and $1,335 may open the doors for more losses.


Also published on Medium.

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