24-05-2018 11:06 AM
Gold prices ended lower Wednesday, pressured by strength in the dollar as investors were concerned over the fortune of nuclear negotiations with North Korea. Gold edged up from its settlement level after minutes from the Federal Reserve’s May meeting confirmed that Fed officials plan to raise interest rates in June.
Indications of US-China trade tensions saw traders heap into gold, helping the precious metal steady from a heavy selloff last week in spite of a strong uptick in the dollar.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose to a sixth-month high of 94.04.
The gold daily chart has formed “Falling Wedge pattern”. In this pattern, the prices are expected to meet resistance area around $1303 which is the long exit place. This is because of the selling pressure that is likely to occur and result in a fall towards $1285-1275. We had made an assumption in the previous report that there would be unchanged interest rates decision announced in the FOMC meeting minutes, the same has come true the previous night. As per the technical aspects, gold prices would consolidate around the inside channel area. The gold market is in short-term bullish momentum. It is likely to test all the way through $1297-1303 levels in the upcoming sessions.