- – Gold price is currently under a bearish pressure below the $1280 resistance against the US Dollar.
- – There is a major bearish trend line forming with resistance near $1278-1280 on the hourly chart of gold versus the USD.
- – Recently in China, the Caixin Services PMI for Nov 2017 was released.
- – The outcome was above the forecast of 51.5 as there was a rise in the PMI from 51.2 to 51.9.
Caixin China Services PMI
Recently in China, the Caixin Services PMI for Nov 2017 was released. The market was positioned for a rise in the PMI from the last reading of 51.2 to 51.5.
The actual result was above the forecast of 51.5 as there was a rise in the PMI from 51.2 to 51.9. Moreover, the Composite Output index increased from the last reading of 51.0 to 51.6. The report stated:
Data broken down by sector indicated that business activity growth improved across both the manufacturing and service sectors during November. In the manufacturing sector, the pace of increase picked up from October’s four-month low, but remained moderate overall.
Overall, the result was positive, but gold price is struggling to hold the $1270-1272 support area.
Gold Price Technical Analysis
There was a slow and steady decline in Gold price from the $1295-1296 swing high against the US Dollar. The price declined below a couple of important support levels such as $1288, $1282 and $1280 to settle below the 100 hourly simple moving average.
There was even a break below the $1275 level and the price traded as low as $127096. At the moment, the price is consolidating above the $1270 level with an initial resistance around the 38.2% Fib retracement level of the last decline from the $1289.16 high to $1270.96 low.
Moreover, there is a major bearish trend line forming with resistance near $1278-1280 on the hourly chart of gold versus the USD. The trend line resistance is near the 100 hourly SMA and the 50% Fib retracement level of the last decline from the $1289.16 high to $1270.96 low.
Therefore, it won’t be easy for buyers to break the $1280 resistance and gain strength above the 100 hourly SMA. On the downside, a break below $1270 could ignite more declines in the near term.Tags: Gold Price, Gold Price Analysis, Gold Price Chart, Gold Price Forecast, Gold Price Technical Analysis, US Dollar