Key Points
- There was a sharp decline in Gold price from the $1280 swing high against the US Dollar.
- There was a break below a contracting triangle with support at $1273 on the hourly chart.
- Recently in China, the Retail Sales report for Oct 2017 was released by the National Bureau of Statistics of China.
- The outcome was below the forecast of +10.4% as there was an increase of 10% (YoY).
Gold Price Technical Analysis
Gold price struggled a lot to break the $1280 and $1282 levels against the US Dollar. As a result, there was a downside move, and the price traded below the $1275 support to settle below the 21 hourly simple moving average.
During the downside move, there was a break below a contracting triangle with support at $1273 on the hourly chart. The price traded as low as $1265.4 and is currently correcting higher.
An initial resistance on the upside is near the 23.6% Fib retracement level of the last decline from the $1280.1 high to $1265.4 low. Moreover, the broken support at $1273 is likely to act as a strong resistance along with the 50% Fib retracement level of the last decline from the $1280.1 high to $1265.4 low.
China’s Retail Sales
Recently in China, the Retail Sales report for Oct 2017 was released by the National Bureau of Statistics of China. The market was positioned for the retail sales to rise by 10.4% compared with the same month a year ago.
The actual result was below the forecast of +10.4% as there was an increase of 10%. It was also lower than the last increase of 10.3%. Looking at the urban investment, there was a rise of 7.3% in Oct 2017 (YoY), which was slightly lower than the forecast of 7.4%.
Overall, gold price might struggle to move higher and will most likely face hurdles near the $1272 and $1723 levels.
