Gold Price Daily Chart Suggest Support Formation

Gold Price Daily Chart Suggest Support Formation

Key Highlights

  • There was a solid decline in Gold price against the US Dollar, taking it below the $1200 support area.
  • The price recently traded a few points below the $1160 level before starting a consolidation.
  • Today in China, the Consumer Price Index released by the National Bureau of Statistics of China posted a rise of 0.1% in Nov 2016, compared with the previous month.
  • The yearly Consumer Price Index came in at 2.3%, compared with the forecast of 2.2%.

Gold Price Technical Analysis

The US dollar bulls remained in action against gold, as there was a decline in gold price below $1180. It looks like the price is now forming a support for a possible upside recovery.

Gold Price Technical Analysis Chart

If we have a look at the daily chart of gold price versus the US Dollar, we can clearly see a decline from the $1337 high to $1157 low. The price started gaining bids near the $1160 support and slightly moved higher.

There is also a possibility that the price is forming a consolidation phase before buyers make an attempt to take the price higher. A break above the highlighted bearish trend line on the daily chart is needed for more gains.

Chinese Consumer Price Index

Today in China, there was a major risk event, as the Consumer Price Index, which is a measure of retail price variations within a representative basket of goods and services was released by the National Bureau of Statistics of China.

The market was aligned for an increase of about 0.1% in Nov 2016, compared with the previous month. The result was in line with the forecast, as there was a rise of 0.1% in the CPI.

When we have a look at the yearly change, then the CPI increased 2.3% in Nov 2016, compared with the same month a year ago. It was better compared with the forecast of 2.2%.

US Wholesale Inventories

Today in the US, there is no high-risk event. The only economic release to watch out will be the Wholesale Inventories by the US Census Bureau. The forecast is of a 0.4% decline in Oct 2016. If the result fails to impress, then there is a chance of Gold price moving a few points higher.



Aayush Jindal

Aayush is a Senior Forex, Cryptocurrencies and Financial Market Strategist with a background in IT and financial markets. He specialises in market strategies and technical analysis, and has spent over a decade as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the currency, commodities, Bitcoin and Ethereum markets.

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