Can Gold Price Gain Upside Momentum Vs US Dollar?
- – Gold price formed a decent support above the $1,315 level against the US Dollar.
- – There was a break above a key bearish trend line with resistance at $1,321 on the hourly chart of gold versus the USD.
- – Recently in China, the Retail Sales report for Jan 2018 was released by the National Bureau of Statistics of China.
- – The outcome was below the forecast of 9.8% as there was a rise of 9.7% in sales in Jan 2018.
China’s Retail Sales
Recently in China, the Retail Sales report for Jan 2018 was released by the National Bureau of Statistics of China. The market was slated for a rise of around 9.8% in sales in Jan 2018 compared with the same month a year ago.
The actual result was below the forecast of 9.8% as there was a rise of 9.7% in sales in Jan 2018. However, the industrial production figure for Jan 2018 was impressive, as there was a rise of 7.2% compared with the same month a year ago. It was well above the forecast of 6.1% and also more than the last 6.2%.
At the moment, gold price is trading nicely in a bullish zone above the $1,320 level, and it could gain upside momentum.
Gold Price Technical Analysis
There was a solid support base formed above the $1,310 level in gold price against the US Dollar. The price started trading higher after forming a swing low at $1,315, and it broke the $1,320 resistance and the 100 hourly simple moving average.
Moreover, there was a break above the 50% Fib retracement level of the last drop from the $1,340 high to $1,313 low. Lastly, there was a break above a key bearish trend line with resistance at $1,321 on the hourly chart of gold versus the USD.
The price is now trading comfortably above the $1,320 level and it seems like it could move above $1,330 level. The next major hurdle is around the 76.4% Fib retracement level of the last drop from the $1,340 high to $1,313 low.
On the downside, the broken resistance near $1,320-21 may now serve as a support if the price corrects lower from the current levels.
Also published on Medium.
