Falling Channel Pattern Breakout & Gold Turn Positive Today

gold

06-06-2018 10:40 AM

Gold prices traded higher on Tuesday against a weaker dollar regardless of optimistic U.S. economic data signifying inflationary pressures were building, raising the outlook of further rate hikes.

ISM non-manufacturing data for May revealed a slight increase to 56.8, beating expectations for 55.7.ISM non-manufacturing paid index rose to its highest since 2017.

The slight increase in the data for the short term enhanced the dollar but its gains were pared subsequent to a rise in the euro on easing political worries in Italy.

Technical chart


gold

Technical outlook

Gold prices moved higher yesterday and prices broke out above the resistance line wherein “Falling channel pattern was broken out” on a daily chart. Gold prices turned short-term bullish as the resistance line has already been broken out and signals buyers control the market. As per the pattern's indication, this may continue with a little upside pressure and the next momentum will travel upside towards $1315-1325. Support revised to $1288.