Key Points
- Gold price has a good bullish run recently as it moved above $1225 against the US Dollar.
- There is a major bullish trend line formed with support at $1220 on the hourly chart of Gold.
- Recently in China, the Retail Sales report for June 2017 was released by the National Bureau of Statistics of China.
- The outcome was above the forecast, as the Retail Sales posted an increase of 11% (YoY).
Gold Price Technical Analysis
There were decent gains in Gold price recently as it managed to break the $1220-22 resistance area against the US Dollar. The price was also able to break the $1225 level, which opened the gates for more gains in the short term above the 21 hourly simple moving average.
The price traded as high as $1232.8 and currently correcting towards the 23.6% Fib retracement level of the last wave from the $1214.6 to $1232.8.
On the downside, there is a major support at $1228-25. Moreover, there is a major bullish trend line formed with support at $1220 on the hourly chart of Gold. Lastly, the 50% Fib retracement level of the last wave from the $1214.6 to $1232.8 at $1223.7 along with the 21 hourly simple moving average is a major support.
Chinese Retail Sales
Recently in China, the Retail Sales report for June 2017 was released by the National Bureau of Statistics of China. The market was positioned for a rise of 10.6% in the sales compared with the same month a year ago.
The actual result was above the forecast, as Retail Sales posted an increase of 11%. When we look at the Industrial output for June 2017, the market was positioned for a rise of 6.5% compared with the same month a year ago. However, the result was again positive, as there was a rise of 7.6%
Overall, gold price remains supported on the downside near $1227-25 in the near term.
