Key Points
- Gold price recently declined towards the $1240 support area where it found buyers against the US Dollar.
- The price broke a bearish trend line on the hourly chart at $1242 to open the doors for more gains.
- Recently in the US, the Initial Jobless Claims (June 16, 2017) was released by the US Department of Labor.
- The outcome was below the forecast, as there was an increase in the claims from the last revised reading of 238K to 241K.
Gold Price Technical Analysis
There was a downside move in gold price towards $1240-42 earlier this week against the US Dollar. The downside found support at $1240 from where the price started moving higher and traded above the $1245 resistance and the 21 hourly simple moving average.
During the upside, the price broke a bearish trend line on the hourly chart at $1242 and the 38.2% Fib retracement level of the last decline from the $1266 high to $1240 low.
The price is currently attempting a break above the 50% Fib retracement level of the last decline from the $1266 high to $1240 low. A close above $1254 could ignite further gains in Gold in the short term.
US Initial Jobless Claims
Recently in the US, the Initial Jobless Claims (June 16, 2017) was released by the US Department of Labor. The forecast was lined up for an increase from the last reading of 237K to 240K for the week ending June 17 2017.
However, the result was below the forecast, as there was an increase in the claims from the last revised reading of 238K to 241K. The report added that the “previous week’s level was revised up by 1,000 from 237,000 to 238,000. The 4-week moving average was 244,750, an increase of 1,500 from the previous week’s revised average”.
Overall, gold price is likely to continue trading higher towards the $1256-60 area in the near term.
