Gold price continued to trade higher, and moved past $1200 against the US Dollar. The price is currently correcting lower and remains supported near $1188.
Gold Price Forecast – Buying Dips Near $1188 Good Idea?
· The price of Gold remains in an uptrend, as there was a break above $1200 recently.
· The price is currently correcting lower, and approaching a support area near $1188 in the form of a bullish trend line on the 4-hours chart of XAUUSD.
· The US Initial Jobless Claims released by the US Department of Labor yesterday posted a rise from the last revised reading of 237K to 247K.
Gold Price Technical Analysis
We saw how Gold price remained in an uptrend recently, and climbed higher towards $1200. There was also a break above the stated level for a move as high as $1206. The price is currently correcting lower and moved below the $1200 support.
It also cleared the 38.2% Fib retracement level of the last wave from the $1177 low to $1206 high, and currently trading above the $1190 support. There is a bullish trend line on the 4-hours chart of XAUUSD, which may serve as a buy area near $1188 if the price moves down.
At the moment, the price gaining bids near the 50% Fib retracement level of the last wave from the $1177 low to $1206 high. If it holds, the price may bounce back and may attempt to move back above the $1200 level.
Trade Idea – If you are looking to enter a buy trade, then consider it as long as the price is above the highlighted trend line support with a stop below $1185.
Recently in the US, the Initial Jobless Claims data was released by the US Department of Labor. The market was expecting a rise from 235K to 255K. However, the result was better, as there was a rise from the last revised reading of 237K to 247K.
Overall, it looks like Gold price may continue to move higher. If it succeeds in closing back above the $1200 level, there are chances of a move towards $1210. On the downside, we need to follow the trend line support near $1188-1185.