Gold Price Correcting From $1325 Vs US Dollar

Gold Price Correcting From $1325 Vs US Dollar

  • – Gold price rocketed higher recently and traded above the $1320 level against the US Dollar before starting a correction.
  • – The price has moved down and broke a bullish trend line with support at $1310 on the hourly chart of gold versus the USD.
  • – Recently in China, the NBS Manufacturing Purchasing Managers Index (PMI) for August 2017 was released by the China Federation of Logistics and Purchasing (CFLP).
  • – The outcome was above the forecast, as there was a rise from the last reading of 51.4 to 51.7.

 

China’s NBS Manufacturing PMI

Recently in China, the NBS Manufacturing Purchasing Managers Index (PMI) for August 2017 was released by the China Federation of Logistics and Purchasing (CFLP). The market was positioned for a minor decline from the last reading of 51.4 to 51.3.

 

The actual result was above the forecast, as there was a rise from the last reading of 51.4 to 51.7. The non-manufacturing PMI on the other hand, posted a decline from the last reading of 54.5 to 53.4. The CLIP report added that:

From the 13 sub-index, compared with the previous month, the production index, the new order index, purchase index, import index, purchase price index, ex-factory price index, production and business activities expected to rise, the remaining six indices fell slightly The In the upside index, the purchase price index, the ex-factory price index rose more than 1 percentage point, the other index rose less.

 

Overall, gold price might continue to correct lower in the near term, but remains supported around the $1290 level.

 

Gold Price Technical Analysis

There was a sharp rise in Gold price above the $1300 level against the US Dollar. The price rocketed higher and broke the $1310 and $1320 resistance level to trade towards the $1325 level where it founds selling interest.

 

Gold Price Technical Analysis

 

The price later started a correction from the $1325.91 high and moved below the 23.6% Fib retracement level of the last wave from the $1274.91 low $1325.91 high. The downside move was such that the price even broke the $1315 support and the 100 hourly simple moving average.

 

The price even traded below a bullish trend line with support at $1310 on the hourly chart of gold versus the USD. At the moment, it is finding bids near the 50% Fib retracement level of the last wave from the $1274.91 low $1325.91 high.

 

However, there is a bearish trend line on the upside waiting to act as a resistance near $1305 for another downside push towards the $1300 and $1292 support levels.

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