Gold bounce back to resistance line & daily gold trend ideas

gold-enrich

19-06-2018 11.15 AM

Gold prices rose diffidently as the U.S. dollar was flat against its contenders and rising U.S.-China trade worries stimulated investor hunger for safe-haven.

After the biggest one-day fall in view of the fact that November 2016, gold prices made a shy start to the week as traders pondered over the outlook of additional dollar upside against the growing trade-war worries linking U.S and China.

Technical chart

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Technical outlook

Gold prices have broken the long-term support dotted line $1296 which is now expected to be the resistance as per the “Falling wedge pattern” which has formed. In this pattern prices took consolidation again towards upside resistance line at $ 1290 which is the most resistive one. In the meanwhile, prices met the support line at $1272. We can go fresh short upon reaching the higher side. Gold turned bearish as the long-term support has been broken out. The next support is seen at $1240 level.