Gold Price Could Decline Further Below $1,315 Vs US Dollar
- – Gold price started a downside move and declined below the $1,330 support against the US Dollar.
- – There is a major bearish trend line forming with resistance at $1,325 on the hourly chart of gold versus the USD.
- – Recently in China, the Manufacturing Purchasing Managers Index (PMI) for April 2018 was released by the China Federation of Logistics and Purchasing (CFLP).
- – The outcome was above the forecast of 51.3 as the PMI came in at 51.4.
China’s New Loans
Recently in China, the Manufacturing Purchasing Managers Index (PMI) for April 2018 was released by the China Federation of Logistics and Purchasing (CFLP). The market was slated for a decline from the last reading of 51.5 to 51.3.
The actual result was above the forecast of 51.3 as the PMI came in at 51.4. Looking at the official non-manufacturing PMI, there was a rise from the last reading of 54.6 to 54.8, whereas the market was looking for a rise to 55.1.
It seems like Gold price remains in a bearish zone and it could even break the recent low of $1,315 to decline further.
Gold Price Technical Analysis
After trading above the $1,350 level, gold price faced sellers against the US Dollar. The price started a downside move and declined below the $1,350 and $1,330 support levels. There was even a break below the $1,325 support and the 100 hourly simple moving average.
The price traded as low as $1,315 before starting an upside correction. It traded higher and moved above the 23.6% Fib retracement level of the last decline from the $1,332 high to $1,315 low.
However, the price is facing hurdles near the $1,325 resistance. Moreover, the 61.8% Fib retracement level of the last decline from the $1,332 high to $1,315 low acted as a resistance. There is also a major bearish trend line forming with resistance at $1,325 on the hourly chart of gold versus the USD.
At the moment, the price is trading with a bearish angle below $1,325 and the 100 hourly SMA. On the downside, a break below $1,315 may perhaps call for further losses towards the $1,300 level.
Also published on Medium.
