Gold Price Accelerating Declines Below $1,245 Vs US Dollar
- – Gold price declined recently and broke a key support near $1,245 against the US Dollar.
- – There is a key bearish trend line formed with resistance near the $1,245 level on the hourly chart of gold versus the USD.
- – Recently in the US, the Institute for Supply Management (ISM) Manufacturing Index for June 2018 was released.
- – The outcome was above the forecast of 58.4 as there was a rise in the Index to 60.2.
US Institute for Supply Management (ISM) Manufacturing Index
Recently in in the US, the Institute for Supply Management (ISM) Manufacturing Index for June 2018 was released. The market was looking for a decline in the index from the last reading of 58.7 to 58.4.
The actual result was above the forecast of 58.4 as there was a rise in the Index to 60.2, which is the 110th consecutive month increase. Moreover, the New Orders Index posted a reading of 63.5, a bit lower than the last reading of 63.7. The report added that:
New Orders, Production, and Employment Growing, Supplier Deliveries Slowing at Faster Rate; Backlog Growing, Raw Materials Inventories Growing; Customers’ Inventories Too Low, and Prices Increasing at Slower Rate; Exports and Imports Growing.
Gold price remained in a bearish zone below the $1,245 level and it seems like recoveries in the near term could be capped.
Gold Price Technical Analysis
After forming a high near the $1,255 level, gold price started a downside move against the US Dollar. The price declined and broke the $1,250 and $1,245 support levels to settle below the 100 hourly simple moving average.
The price recently traded as low as $1,237.82 and it is currently consolidating losses. An initial resistance is near the 23.6% Fib retracement level of the last decline from the $1,255 high to $1,237 low.
There is also a key bearish trend line formed with resistance near the $1,245 level on the hourly chart of gold versus the USD. The same trend line is near the 50% Fib retracement level of the last decline from the $1,255 high to $1,237 low.
Therefore, if the price corrects higher from the current levels, it is likely to find sellers near the $1,245 and $1,246 levels. On the downside, supports are seen at $1,237, $1,235 and $1,232.
Also published on Medium.
