Gold Price Could Break Above $1,225 Vs US Dollar

Gold Price Could Break Above $1,225 Vs US Dollar

  • – Gold price is trading above key support levels at $1,220 and $1,218 against the US Dollar.
  • – There is a crucial contracting triangle forming with resistance near $1,223 on the hourly chart of gold versus the USD.
  • – Recently in China, the Manufacturing Purchasing Managers Index (PMI) for July 2018 was released by the China Federation of Logistics and Purchasing (CFLP).
  • – The outcome was below the forecast of 51.3 as there was a decline in the PMI from 51.5 to 51.2.

Chinese NBS Manufacturing PMI

Recently in China, the Manufacturing Purchasing Managers Index (PMI) for July 2018 was released by the China Federation of Logistics and Purchasing (CFLP). The market was looking for a decline from the last reading of 51.5 to 51.3.

 

The actual result was below the forecast of 51.3 as there was a decline in the PMI from 51.5 to 51.2. Looking at the official non-manufacturing PMI, there was a decline from the last reading of 55 to 54, whereas the market was aligned for no change.

 

Gold price is trading above the $1,220 support and it seems like it could break higher above the $1,225 resistance in the near term.

 

Gold Price Technical Analysis

Recently, there was a downside move in gold price from well above the $1,230 level against the US Dollar. The price declined and traded below the $1,225 and $1,222 support levels plus settled below the 100 hourly simple moving average.

 

Gold Price Technical Analysis

 

However, losses were protected by the $1,218 support area. The price recovered and an intermediate low was formed at $1,220. At the moment, there is a crucial contracting triangle forming with resistance near $1,223 on the hourly chart of gold versus the USD.

 

An initial resistance is near $1,222 and the 38.2% Fib retracement level of the last decline from the $1,224 high to $1,220 low. However, the price must break the triangle resistance to gain traction.

 

Moreover, a break above the 50% Fib retracement level of the last decline from the $1,224 high to $1,220 low could help gold buyers in the near term. Above $1,225, the price could move towards the $1,332 level. On the downside, key supports are at $1,220 and $1,218.


Also published on Medium.

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