Gold Price Could Resume Upside Above $1,260 Vs US Dollar

Gold Price Could Resume Upside Above $1,260 Vs US Dollar

  • – Gold price traded as high as $1,265 before starting a downside correction against the US Dollar.
  • – There is a major bullish trend line in place with support at $1,255 on the hourly chart of gold versus the USD.
  • – Recently in China, the Consumer Price Index for June 2018 was released by the National Bureau of Statistics of China.
  • – The outcome was below the forecast of 0% as there was a decline in the CPI in June 2018 by 0.1%.

Chinese CPI

Recently in China, the Consumer Price Index for June 2018 was released by the National Bureau of Statistics of China. The market was looking for no change in the CPI in June 2018 compared with the previous month.

 

The actual result was below the forecast of 0% as there was a decline in the CPI in June 2018 by 0.1%. Looking at the yearly change, there was a rise of 1.9% in the CPI, more than the last +1.8%. On the positive side, the Producer Price Index in June 2018 rose 4.7% (YoY), more than the forecast of +4.5%.

 

Gold price is currently correcting lower, but it remains well supported above the $1,255 and $1,252 levels.

 

Gold Price Technical Analysis

There was a decent upside wave in gold price from the $1,251 low against the US Dollar. The price traded higher and broke the $1,258 and $1,260 resistance levels to settle above the 100 hourly simple moving average.

 

Gold Price Technical Analysis

 

The price traded as high as $1,265 and later it started a downside correction. It moved down and broke the 38.2% Fib retracement level of the last wave from the $1,251 low to $1,265 high. However, declines were protected by the $1,255-1,256 support zone.

 

There is also a major bullish trend line in place with support at $1,255 on the hourly chart of gold versus the USD. The same trend line is near the 61.8% Fib retracement level of the last wave from the $1,251 low to $1,265 high.

 

Therefore, it seems like the price remains well supported above the $1,255 level. A break above the $1,260 level could open the doors for an upside move towards $1,265.


Also published on Medium.

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