Gold Price Approaching Monster Hurdle Vs US Dollar

Key Highlights

  • Gold price is trading with a positive bias, but heading towards a monster resistance at $1280.
  • The weekly chart of gold price clearly highlights a major resistance around $1280 and $1300.
  • Today in the US, the Consumer Confidence for March 2017 will be released by the Conference Board, which is forecasted to decrease from 114.8 to 113.8.
  • The Richmond Fed Manufacturing Index is forecasted to decrease from 17 to 16 in Feb 2017.

Gold Price Technical Analysis

After trading towards $1120, gold price recovered against the US Dollar, but now it faces a monster hurdle near $1280 and $1300 considering a bigger picture.

Gold Price Technical Analysis

Gold price started a recovery from the $1123 low against the US Dollar. It moved above the 23.6% Fib retracement level of the last wave from the $1375 high to $1123. This prompted a move above the 100 and 200 weeks simple moving average.

Finally, the price was able to break the 50% Fib retracement level of the last wave from the $1375 high to $1123. However, the price is facing a major resistance around $1280 and $1300. There is a crucial bearish trend line on the weekly chart near $1280. The same level also acted as a hurdle on many occasions earlier.

So, a move above $1280 or $1300 won’t be easy. In the short term, there can be further gains, but we need to keep a close watch on the stated resistance levels.

US Consumer Confidence

Today, the US will witness a major release, as the Consumer Confidence for March 2017 will be published by the Conference Board. The market is expecting the level of confidence that individuals have in economic activity to decrease from 114.8 to 113.8 in March 2017.

Similarly, the market is positioned for a decline in the Richmond Fed Manufacturing Index from 17 to 16 in Feb 2017. If these index post a decline, then the greenback might decline in the short term.

Other Economic Releases to Watch Today

  • US Wholesale Inventories for Feb 2017 (preliminary) – Forecast +0.1%, versus -0.2% previous.
  • France Consumer Spending for Feb 2017 (MoM) – Forecast -0.1%, versus +0.6% previous.
  • S&P/Case-Shiller Home Price Indices for Jan 2017 (YoY) – Forecast +5.7%, versus +5.6% previous.
  • Fed’s Janet L. Yellen Speech.


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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