Gold on the way move to support at $1254 and gold trend negative signal

gold

21-06-2018 10:45 AM

Gold prices stayed close above session lows on Wednesday as worries of a fully-fledgedtrade war involving the U.S-China eased, carryingU.S. bond yields higher, reducing demand for the precious metal gold.

The U.S. 10Y Treasury yields mounteddistinctly as trader sentiment swivelledto riskier assets followed by the easing trade worries and aggressive comments from Fed chairman Jerome Powell, who mentioned the case for steady rate hikes was "strong."

Technical chart

gold

Technical outlook

Gold prices on the way towards support line which is a “Falling wedge pattern” on the daily chart. In this pattern, prices are under the selling mode 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.