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Gold Extending Losses, US Data Again Beats Economist's Expectations

Gold is sliding after the release of US Non-manufacturing PMI report. The official data showed that the economic activity in non-manufacturing sector in US increased for the 54th consecutive month. The index registered 58.7% in July which is 2.7% points higher than the June reading of 56% and 2.1% points higher than the economists forecast of 56.6. This represents the highest reading for the index since its inceptions in January 2008.

XAUUSD : Daily Chart 

On the daily chart, Gold extended its losses by declining from the falling resistance trend line. The nearest support for the commodity is at 1277.61. Gold seems like trading within a falling wedge and thus may also find support from the falling support trend line of the wedge. A falling wedge gives bullish signal so according to technical analysis Gold might surge breaking the resistance trend line. However it will find the resistance at 1305.87 if it surges. A decline below the support at 1277.61 will fade away the bullish expectation and bring more losses. The next support would be at 1264.89 if it continues to decline.