Gold Price Breaks Key Support Near $1,200 Vs US Dollar

Gold Price Breaks Key Support Near $1,200 Vs US Dollar

  • – Gold price declined recently and broke the $1,200 support area against the US Dollar.
  • – There is a crucial bearish trend line formed with resistance at $1,192 on the hourly chart of gold versus the USD.
  • – Recently in China, the hosing price index for July 2018 was released by the National Bureau of Statistics.
  • – The outcome was above the forecast of +5.5% as there was a rise in the HPI by 5.8%.

Chinese Housing Price Index

Recently in China, the hosing price index for July 2018 was released by the National Bureau of Statistics. The market was looking for a rise of 5.5% in the index in July 2018 compared with the last rise of 5%.

 

The actual result was above the forecast of +5.5% as there was a rise in the HPI by 5.8%. Moreover, in Australia, the Wage Price Index for Q2 2018 was released by the Australian Bureau of Statistics. The outcome was line with the forecast as there was a rise of 0.6% (QoQ).

 

Gold price is currently under a lot of pressure and it is likely to decline below the $1,185 support level in the near term.

 

Gold Price Technical Analysis

Gold price faced a solid resistance near the $1,218-1,220 zone recently against the US Dollar. The price started a major downside move, broke the $1,205 and $1,200 support levels, and also settled below the 100 hourly simple moving average.

 

Gold Price Technical Analysis

 

An intermediate low was formed at $1,191 before the price corrected higher. However, it failed to break the $1,200 resistance and declined below the $1,190 support area. It also broke the 1.236 Fib extension level of the last wave from the $1,191 low to $1,198 high.

 

Therefore, there are chances of more losses below $1,188 in the near term. It could even break the 1.618 Fib extension level of the last wave from the $1,191 low to $1,198 high at $1,187.

 

On the upside, there is a crucial bearish trend line formed with resistance at $1,192 on the hourly chart of gold versus the USD. Only a break and close above the trend line, followed by a close above $1,200 could open the doors for a recovery.


Also published on Medium.

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