Technical analysis for gold prices and trend analysis of gold prices|Enrich

gold

22-06-2018 11:10 AM

Gold prices relieved from fresh lows for the year as the dollar moved unenthusiastic on weaker U.S. economic data.

A quick draw back in the dollar from its uppermost level since last summer sustained a recovery in the precious metal. However sentiment remained unhelpful accompanied by outlook that a more forceful Fed rate-hike cycle would persist to prompt demand for the greenback.

Subsequent to the Fed's rate hike the previous week, and more aggressive outlook on rate hikes, gold prices have fallen 3%.According to traders, the discrepancy between the Fed's aggressive outlook on monetary policy related to other central banks will impel demand for the greenback.

Technical chart

gold

Technical outlook

Gold prices marked fresh low at $1263 and prices are likely to reach support line wherein a “Falling channel pattern” on the daily chart. In this pattern, prices are under selling pressure towards $1254. Upon reaching support area the prices are likely to consolidate again towards upside resistance line at $1269 which is the most resistive one. We can go fresh short entry on current level at $1269. Gold turned bearish as the long-term support has been broken out. The next support is seen at $1254 level.