Gold Price Could Break Higher Toward $1,220 Vs US Dollar

Gold Price Could Break Higher Toward $1,220 Vs US Dollar

  • – Gold price is slowly recovering and is currently trading above $1,205 against the US Dollar.
  • – There is a major bearish trend line in place with resistance at $1,214 on the hourly chart of gold versus the USD.
  • – Recently in China, the Trade Balance report for July 2018 was released by the General Administration of Customs of the People’s Republic of China.
  • – The outcome was below the forecast of $39.33B as there was a trade surplus of $28.05B (YoY).

Chinese Trade Balance

Recently in China, the Trade Balance report for July 2018 was released by the General Administration of Customs of the People’s Republic of China. The market was looking for a trade surplus of $39.33B in July 2018 compared with the same month a year ago.

 

The actual result was below the forecast of $39.33B as there was a trade surplus of $28.05B (YoY). Imports of goods and services in July 2018 increased 20.9% (YoY), more than the forecast of +6.9%. Exports of goods and services in July 2018 increased 12.2% (YoY), more than the forecast of +10.0%.

 

Gold price is slowly recovering, but it must break the $1,214-1,215 resistance area to gain upside momentum in the near term.

 

Gold Price Technical Analysis

After a major dip, gold price formed a decent support near the $1,202 level and recovered against the US Dollar. The price started moving higher, traded above $1,210 and later formed an intermediate low near the $1,207 level.

 

Gold Price Technical Analysis

 

The price recently broke the 50% Fib retracement level of the last decline from the $1,216 high to $1,208 low. It is also trading above the 100 hourly simple moving average and $1,210. Therefore, the price may continue to move higher above the $1,212 level in the near term.

 

However, there is a major bearish trend line in place with resistance at $1,214 on the hourly chart of gold versus the USD. The price must break the trend line resistance and $1,215 to gain upside momentum in the near term.

 

Above $1,215, the price may perhaps move above towards the $1,220 level. On the flip side, if there is a downside correction, the price will most likely find support near the $1,210 and $1,208 levels.


Also published on Medium.

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