Key Points
- Gold price traded higher recently against the US Dollar to close above $1265.
- There is a major bullish trend line formed on the hourly chart, which may act as a support at $1275 on the downside.
- Today in China, the Caixin China Manufacturing PMI™ was released by Markit Economics.
- The outcome was positive, as there was a rise from the last reading of 50.1 to 51.2 in Oct 2016.
Gold Price Technical Analysis
There was a corrective wave in Gold price from the $1283 high to $1270 low. However, the 21 hourly simple moving average and a major bullish trend line formed on the hourly chart acted as a support area and prevented any further losses.
The price is currently moving higher, and already broke the 50% Fib retracement level of the last decline from the $1283 high to $1270 low.
So, there is a high possibility that the price may continue to trade higher in the short term.
Caixin China Manufacturing PMI
Today in China, the Caixin China Manufacturing PMI™, which is based on data compiled from monthly replies to questionnaires sent to purchasing executives in over 400 private manufacturing sector companies was released by Markit Economics.
The market was expecting an expansion, and a minor increase from the last reading of 50.1 to 50.2 in Oct 2016. However, the result was positive, as there was an increase from 50.1 to 51.2. The report highlighted that a “Chinese manufacturers signalled an improvement in growth at the start of the fourth quarter, with output expanding at the quickest rate in over five-and-a-half years amid a rebound in new order growth. Stronger demand appeared to be led by improved domestic orders, however, as the level of new export sales fell slightly over the month”.
Overall, it looks like Gold price may soon gain pace further and trade above the $1280 resistance area.
