Gold Price Maintains Bearish Bias Below $1230 Vs US Dollar

Gold Price Maintains Bearish Bias Below $1230 Vs US Dollar

  • – Gold price continued to decline and moved below the $1218 support against the US Dollar.
  • – There are two bearish trend lines with resistance at $1218 forming on the hourly chart of gold versus the USD.
  • – Recently in China, the Consumer Price Index for June 2017 released by the National Bureau of Statistics of China posted a decline of 0.2% (MoM).

 

Chinese Consumer Price Index

Recently in China, the Consumer Price Index for June 2017 was released by the National Bureau of Statistics of China. The market was positioned for a minor decline in the CPI by 0.1% compared with the previous month.

 

However, the actual result was on the lower side, as the Chinese CPI posted a decline of 0.2% (MoM). In terms of the yearly change, there was a rise of 1.5%, which was in line with the forecast and same as the last reading. The Chinese Producer Price Index also posted an in line forecast increase of 5.5% in June 2017, compared with the same month a year ago.

 

Overall, the result was neutral and might not help Gold to recover above the $1220-1230 resistance in the near term.

 

Gold Price Technical Analysis

In the last analysis, we discussed that selling rallies in Gold price near $1240 may be considered as long as it is below $1248. The price failed to gain momentum and extended its decline below $1235 to break the $1230 support area.

 

Gold Price Technical Analysis

 

During the downside move, the price broke an important support area near $1218-1220, which may now act as a resistance if the price corrects higher. It recently traded as low as $1207.26 and currently attempting a recovery.

 

The price is currently above the 23.6% Fib retracement level of the last decline from the $1228.31 high to $1207.26 low. On the upside, there are two bearish trend lines with resistance at $1218 forming on the hourly chart of gold versus the USD.

 

The trend line resistance also coincides with the $1218 pivot and the 50% Fib retracement level of the last decline from the $1228.31 high to $1207.26 low. So, as long as the price is below $1220, it may resume the downtrend and could retest $1207 in the near term.

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