Gold price is under pressure and trading below the $1260 support against the US Dollar.
It seems like the price is forming a double top pattern near $1295 on the daily chart.
Recently in the US, the Durable Goods Orders for May 2017 released by the US Census Bureau posted a decline of 1.1%.
Today, the Fed’s Janet L. Yellen speech is scheduled, which might impact gold price in the near term.
Gold Price Technical Analysis
Gold price made another attempt to break $1295-1300 on 6th June 2017, but failed. It is now at a risk of more declines towards $1200 in the near term.Looking at the daily chart of XAU/USD, there are clearly two failures near $1295-1300. It means there is a chance of a double top pattern just below the $1300 handle.The price is already trading lower, and broke the 50% Fib retracement level of the last wave from the $1214 low to $1296 high.On the downside, there is a crucial bullish trend line at $1234. Moreover, the 200-day simple moving average is at $1236.If the price breaks and settles below the trend line support at $1234, it would confirm the double top pattern. In the mentioned scenario, the price could extend its decline towards $1210-1200 during the coming days.
US Durable Goods Orders
Recently in the US, the Durable Goods Orders for May 2017 released by the US Census Bureau. The forecast was lined up for a decline of 0.6%, compared to the last -0.7%.However, the actual result was on the lower side, as the Durable Goods Orders declined by 1.1%. And, the last reading was also revised from -0.7% to -0.8%. Similarly, the Core Durable Goods Orders posted a rise of 0.1% in May 2017, which was a lot less than the forecast of +0.5%.The report mentioned that:
New orders for manufactured durable goods in May decreased $2.5 billion or 1.1 percent to $228.2 billion. This decrease, down two consecutive months, followed a 0.9 percent April decrease.
Overall, Gold price may find it hard to hold the trend line support at $1234. A break and close below the mentioned level could ignite further declines towards $1200 in the near term.
Looking at the daily chart of XAU/USD, there are clearly two failures near $1295-1300. It means there is a chance of a double top pattern just below the $1300 handle.The price is already trading lower, and broke the 50% Fib retracement level of the last wave from the $1214 low to $1296 high.On the downside, there is a crucial bullish trend line at $1234. Moreover, the 200-day simple moving average is at $1236.If the price breaks and settles below the trend line support at $1234, it would confirm the double top pattern. In the mentioned scenario, the price could extend its decline towards $1210-1200 during the coming days.
However, the actual result was on the lower side, as the Durable Goods Orders declined by 1.1%. And, the last reading was also revised from -0.7% to -0.8%. Similarly, the Core Durable Goods Orders posted a rise of 0.1% in May 2017, which was a lot less than the forecast of +0.5%.The report mentioned that: