Key Points
- Gold price after declining towards $1247 found support against the US Dollar and recovered.
- There is a bearish trend line on the upside at $1262, which may act as a resistance if the price moves higher.
- Recently in the US, the Goods Trade Balance for April 2017 was released by the US Bureau of Economic Analysis.
- The outcome was below the forecast, as there was a trade deficit of $-68.0B, more than the expectation of $-64.7B.
Gold Price Technical Analysis
We saw a decline in Gold price towards the $1247 level against the US Dollar where a bullish trend line on the hourly chart protected further losses. The price is currently moving higher, and traded above the 50% Fib retracement level of the last decline from the $1263.2 high to $1247.7 low.
There was also a break above the 21 hourly simple moving average and a bearish trend line at $1255. At the moment, the price is struggling to break the 76.4% Fib retracement level of the last decline from the $1263.2 high to $1247.7 low.
However, it may soon break it, but likely to face resistance near a bearish trend line on the upside at $1262.
US Goods Trade Balance
Recently in the US, the Goods Trade Balance for April 2017 was released by the US Bureau of Economic Analysis. The market was positioned for a trade deficit of $-64.7B in April 2017, compared with the last $-65.0B.
The result was below the forecast, as there was a trade deficit of $-68.0B, more than the expectation of $-64.7B. The report added that the “international trade deficit was $67.6 billion in April, up $2.5 billion from $65.1 billion in March. Exports of goods for April were $125.9 billion, $1.1 billion less than March exports. Imports of goods for April were $193.4 billion, $1.4 billion more than March imports“.
Overall, there can be upsides in gold price, but the $1262-65 resistance may continue to be a major hurdle.
