- – Gold price after trading close to the $1225 support vs the US Dollar found bids.
- – The price is once again moving higher, but likely to face resistance near a monster resistance near $1240-43.
- – The US Manufacturing Purchasing Managers Index (PMI) released by the Markit Economics for Feb 2017 (Preliminary) registered a decline from 55.00 to 54.3.
US Manufacturing PMI
Recently, the US saw the release of the Manufacturing Purchasing Managers Index (PMI) by the Markit Economics for Feb 2017 (Preliminary). The forecast was aligned for a minor rise from the last reading of 55 to 55.3.
The result was a few points on the lower side, as the US Manufacturing PMI came in at 54.3 in Feb 2017 (Preliminary), but still registered an expansion, which was a positive sign. Commenting on the outcome, the Chief Business Economist at IHS Markit, Chris Williamson, stated “The drop in the flash PMI numbers for February suggest that the post-election upturn has lost some momentum. Growth of business output, new orders and hiring all waned, as did inflationary pressures”.
Overall, the result was lower than the forecast, but was not bearish for the US Dollar.
Gold Price Technical Analysis
Gold price struggled many times near the $1240-43 resistance area against the US Dollar. The recent downside towards $1225 was also a result of the same resistance. The price thankfully found support near a bullish trend line at $1226 and started moving higher.
It has moved above the 38.2% Fib retracement level of the last decline from the $1243 high to $1226 low. However, it was seen struggling to stay above the 50% Fib retracement level of the last decline from the $1243 high to $1226 low. So, there is a chance of a minor dip in Gold price before it makes a recovery.
On the upside, the highlighted resistance area $1240-43 remains the key. A break above it is needed for further gains. As long as the price is below it, buyers might struggle. On the downside, the trend line support at $1230 is important since the 100 simple moving average is also positioned near it. Overall, it looks like the price has a major support at $1230 and resistance at $1240-43, and we may soon witness a break.Tags: Gold Price, Gold Price Technical Analysis, US Dollar, US Manufacturing PMI