Key Points
- There was a nice upside move in Gold price recently above the $1290-92 levels against the US Dollar before turning bearish.
- The price recently broke a major bullish trend line with support at $1287 on the hourly chart.
- Today in Australia, the trade balance for April 2017 was released by the Australian Bureau of Statistics.
- The outcome was below the forecast, as there was a trade surplus of 555M, which was less than the forecast of 1,950M.
Gold Price Technical Analysis
There was a decent upside move in gold price, as it moved above the $1280 and $1290 resistance levels against the US Dollar. Later, the price faced sellers after trading as high as $1295, and started a downside move.
The price broke the 23.6% fib retracement level of the last wave from the $1258 low to $1295 high, which ignited a downside move below the 21 hourly simple moving average.
During the downside move, the price also broke a major bullish trend line with support at $1287 on the hourly chart. The next support on the downside is around the 50% fib retracement level of the last wave from the $1258 low to $1295 high at $1277.
Australian Trade Balance
Recently in Australia, the trade balance for April 2017 was released by the Australian Bureau of Statistics. The market was positioned for a trade surplus of above 1,900 in April 2017, compared with the last 3,107M.
The result was below the forecast, as there was a trade surplus of 555M, which was less than the last 3,169M (revised). The report added that in “trend terms, the balance on goods and services was a surplus of $3,224m in April 2017, a decrease of $70m (2%) on the surplus in March 2017”.
Overall, there are chances of declines in gold price as long there is close above the $1290 level in the near term.
