Gold Price Remains Supported Above $1275 Vs US Dollar

Gold Price Remains Supported Above $1275 Vs US Dollar

  • – Gold price is trading higher, but upsides are capped by the $1282 resistance against the US Dollar.
  • – There is a major bullish trend line forming with support at $1275 on the hourly chart of gold versus the USD.
  • – Recently in China, the Trade Balance report for Oct 2017 was released by the General Administration of Customs of the People’s Republic of China.
  • – The outcome was below the forecast of $39.50B, as there was a trade surplus of $38.20B.

 

China’s Trade Balance

Recently in China, the Trade Balance report for Oct 2017 was released by the General Administration of Customs of the People’s Republic of China. The market was positioned for a trade surplus of $39.50B compared with the previous $28.47B.

 

The actual result was below the forecast of $39.50B, as there was a trade surplus of $38.20B. The last reading was revised up from $28.47B to $28.61B. Exports of goods and services in Oct 2017 rose 6.9%, which was less than the forecast of 7.2% (YoY). Imports of goods and services in Oct 2017 rose 17.2%, which was more than the forecast of 16% (YoY).

 

The overall result was positive and better than the last time, and might help Gold in moving above the $1282 level in the near term.

 

Gold Price Technical Analysis

There were a couple of rejections in Gold price near the $1282 level against the US Dollar. The price struggled to settle above the $1282 level and started a downside move. It traded towards the $1271 level recently and found strong bids.

 

Gold Price Technical Analysis

 

The price is currently moving higher and trading above the 38.2% Fib retracement level of the last decline from the $1282.86 high to $1271.81 low. Buyers succeeded in pushing the price above the $1275 level and the 100 hourly simple moving average.

 

However, the 61.8% Fib retracement level of the last decline from the $1282.86 high to $1271.81 low is acting as a resistance and preventing further gains. On the downside, there is a major bullish trend line forming with support at $1275 on the hourly chart of gold versus the USD.

 

As long as the price is above $1275 and the 100 hourly SMA, there can be an upside move back toward $1282 or higher.

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