Gold Price Weekly Analysis – More Gains Seem Likely

Gold price after forming a base near $1122 against the US Dollar started moving higher, and currently looks poised for further gains.

Gold Price Weekly Analysis – More Gains Seem Likely

·        Gold price struggled a lot in December until it found buyers near $1120 against the US Dollar.

·        The price moved higher, and broke a bearish trend line (formed on the 4-hours chart) at $1140.

·        Recently in the US, the Initial Jobless Claims released by the US Department of Labor posted a decline from 275K to 265K.

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Gold Price Technical Analysis

Gold price continuous decline came to an end near $1120 against the US dollar where buyers took a stand. The price started correcting higher and broke the 23.6% fib retracement level of the last decline from the $1197 high to $1122 low.

The most important point was a break above a bearish trend line (formed on the 4-hours chart) at $1140. Moreover, the price settled above 38.2% fib retracement level of the last decline from the $1197 high to $1122 low.

Gold Price Dollar 30dec16

Lastly, gold price is now placed above the 100 simple moving average (H4). At the moment, the price is attempting a close above the 50% fib retracement level of the last decline from the $1197 high to $1122 low. If buyers succeed there is a chance of a move towards $1170.

Trade Idea – If you are looking to enter a buy trade, then consider it on dips near the 100 simple moving average (H4 with a stop below it.

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Fundamental Analysis

Recently in the US, the Initial Jobless Claims, which is a measure of the number of people filing first-time claims for state unemployment insurance was released by the US Department of Labor. The market was expecting a decrease from 275K to 264K.

The report was mostly in line with the forecast, as there was a decline from 275K to 265K. The report that the “week ending December 24, the advance figure for seasonally adjusted initial claims was 265,000, a decrease of 10,000 from the previous week's unrevised level of 275,000. The 4-week moving average was 263,000, a decrease of 750 from the previous week's unrevised average of 263,750“.

The US Dollar may struggle against Gold in the short term, which means there is a chance of a move towards $1170.

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