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Gold Price Remains Supported Near $1230 Vs US Dollar

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Aayush Jindal

Key Highlights

  • Gold price traded higher and broke a major resistance at $1230 against the US Dollar.
  • There is a crucial support forming on the downside near $1230-1228 on the 4-hours chart.
  • Recently in the US, the Building Permits figure for June 2017 was published, which came in at 1.254M (MoM).
  • Today in the US, the Initial Jobless Claims (July 15, 2017) will be released, which is forecasted to decline from 247K to 245K.

Gold Price Technical Analysis

Gold price after forming a bottom near $1204 versus the US Dollar started moving higher. It recently broke major resistance at $1230 to gain bullish momentum.Gold Price Technical AnalysisLooking at the 4 hours chart, there was a break above a key bearish trend line at $1231. The price also cleared the 100 simple moving average and the $1230 pivot to trade towards $1245.The price traded as high as $1244.56 before starting a correction. On the downside, there a crucial support forming near $1230-1228 with the help of a bullish trend line and the 100 SMA.Therefore, if the price corrects lower, it may find support near $1230 for another wave higher in the near term. On the upside, a push above $1245 is needed for a test of $1250.

US Building Permits

Recently in the US, the Building Permits figure for 2017 was released by the US Census Bureau, at the Department of Commerce. The market was positioned for an increase of 1.200M compared with the previous month.However, the result was above the forecast, as the Building Permits came in at 1.254M, which is an increase of 7.4% compared with the expiation of 2.8%.US Building PermitsThe report added that:
This is 7.4 percent (±1.1 percent) above the revised May rate of 1,168,000 and is 5.1 percent (±1.4 percent) above the June 2016 rate of 1,193,000. Single-family authorizations in June were at a rate of 811,000; this is 4.1 percent (±0.8 percent) above the revised May figure of 779,000.
There was a minor downside reaction in Gold price towards $1240 after the release, but downsides were limited.

Economic Releases to Watch Today

  • German Producer Price Index for June 2017 (MoM) – Forecast -0.1%, versus -0.2% previous.
  • German Producer Price Index for June 2017 (YoY) – Forecast +2.3%, versus +2.8% previous.
  • Swiss Trade Balance for June 2017 – Forecast 2,890M, versus 3,400M previous.
  • UK Retail Sales for June 2017 (YoY) - Forecast +2.5%, versus +0.9% previous.
  • UK Retail Sales for June 2017 (MoM) - Forecast +0.4%, versus -1.2% previous.
  • UK Retail Sales ex-fuel for June 2017 (YoY) - Forecast +2.5% versus +0.6% previous.
  • UK Retail Sales ex-fuel or June 2017 (MoM) - Forecast +0.5% versus -1.6% previous.
  • US Initial Jobless Claims - Forecast 245K, versus 247K previous.
  • ECB Interest Rate Decision – Forecast 0% versus 0% previous.
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