Gold Price under Heavy Selling Pressure Vs US Dollar

Key Points

  • Gold price started a decline from the $1280-90 high against the US Dollar and moved down.
  • At the moment, the price is finding support near a connecting trend line at $1251 on the hourly chart.
  • Today in China, the FDI (Foreign Direct Investment) for May 2017 was released by the Ministry of Commerce of the People’s Republic of China.
  • The outcome was below the forecast, as there was a decline of 0.7% in the FDI (YoY).

Gold Price Technical Analysis

Gold price started correcting lower from the $1285 swing high against the US Dollar, and slowly the correction turned into a bearish trend. The price declined heavily and moved below the $1275 and $1265 support levels.

It also moved below the 21 hourly simple moving average and the $1260 support to trade towards $1250. Currently, the price is finding support near a connecting trend line at $1251 on the hourly chart.

There is a chance of a short-term correction towards $1255-60, but the price is likely to face sellers. Above $1260, the 21 hourly simple moving average at $1262 may act as a barrier for buyers.

Chinese Foreign Direct Investment

Recently in China, the FDI (Foreign Direct Investment) for May 2017 was released by the Ministry of Commerce of the People’s Republic of China. The market was not expecting any major decline in the FDI in May 2017, compared with the same month a year ago.

The result was below the forecast, as there was a decline of 0.7% in the FDI (YoY). In an another release, the BoJ Interest Rate Decision by the Bank of Japan was a non-event, as there was no change in the interest rates from -0.1%.

Overall, Gold prices may remain under a bearish pressure, and could even break the $1250 support for more declines.

Original Article