Key Points
- There was a sharp rise in Gold price above $1300 against the US Dollar due to North Korea tensions.
- There is a major bullish trend line forming with support at $1305 on the hourly chart of the Gold price.
- Recently in the US, the Dallas Fed Texas Manufacturing Outlook index for August 2017 was released by Federal Reserve Bank of Dallas.
- The outcome was above the forecast of 16.5, as there was a rise from 16.8 to 17.0.
Gold Price Technical Analysis
It was a heavy run in Gold price above the $1280 level against the US Dollar. The price rocketed higher and broker many hurdles like the $1300 level, $1310 level and the 21 hourly simple moving average.
The price recently traded as high as $1319.6 due to North Korea tensions. It is currently correcting lower with an initial support around the 23.6% Fib retracement level of the last wave from the $1297.2 low to $1319.6 high.
On the downside, there is a major bullish trend line forming with support at $1305 on the hourly chart. It is positioned along with the 50% Fib retracement level of the last wave from the $1297.2 low to $1319.6 high to act as a strong support at $1308.
Dallas Fed Texas Manufacturing Outlook Index
Recently in the US, the Dallas Fed Texas Manufacturing Outlook index for August 2017 was released by Federal Reserve Bank of Dallas. The market was positioned for a decrease in the index from the last reading of 16.8 to 16.5.
The actual result was above the forecast of 16.5, as there was a rise from 16.8 to 17. On the other hand, the production index was down slightly to 20.3. The report added that:
Other measures of current manufacturing activity also indicated continued growth. The new orders and the growth rate of orders indexes ticked down but stayed solidly positive, coming in at 14.3 and 11.7, respectively. The capacity utilization index fell six points to 12.2, while the shipments index increased seven points to 18.1.
Overall, Gold price is likely to remain in the bullish zone above the $1305-1308 support area in the near term.
