Gold Price Could Correct Lower Vs US Dollar
- – Gold price is currently correcting lower and is trading below the $1,318 support against the US Dollar.
- – There was a break below a short-term contracting triangle pattern with support at $1,317 on the hourly chart of gold versus the USD.
- – Recently in China, the Retail Sales report for March 2018 was released by the National Bureau of Statistics of China.
- – The outcome was below the forecast of +10% as there was a rise in sales by 9.4%.
China’s Retail Sales
Recently in China, the Retail Sales report for March 2018 was released by the National Bureau of Statistics of China. The market was looking for a rise in sales by 10% in March 2018 compared with the same month a year ago.
The actual result was below the forecast of +10% as there was a rise in sales by 9.4%. Looking at the Industrial production, there was a rise by 7% in the production, more than the forecast of +6.3%. On the other hand, the Fixed Asset Investment came in at 7%, less than the forecast of 7.4%.
At the moment, Gold price is trading in a bearish zone and it could continue to decline towards the $1,310 and $1,305 support levels.
Gold Price Technical Analysis
There was a decent upside move above the $1,320 level in gold price against the US Dollar. The price traded as high as $1,325 before starting a downside correction. It declined and traded below the $1,320 support level to start a downside correction.
The price traded below the 50% Fib retracement level of the last wave from the $1,304 low to $1,325 high. More importantly, there was a break below a short-term contracting triangle pattern with support at $1,317 on the hourly chart of gold versus the USD.
Sellers pushed the price below $1,315 and the 100 hourly simple moving average. It seems like the price may decline further and it could even break the 61.8% Fib retracement level of the last wave from the $1,304 low to $1,325 high.
On the downside, the next major supports are near the $1,310 and $1,305 levels. Below this last, the price could even test the $1,300 handle.
Also published on Medium.
