Gold prices showing natural momentum and gold prices broken resistance line

gold

07-06-2018 11.00 AM

Gold prices dropped discreetly on Wednesday as rising U.S. bond yields required the yellow metal to give up some of its gains following a drop in the dollar.

According to the European Central Bank's top economist - the central bank would consider scaling back bond purchases.The 10-year treasury yield rose roughly just timid of the 3% mark as Treasury prices.

According to the European Central Bank's top economist - the central bank would consider scaling back bond purchases.The 10-year treasury yield rose roughly just timid of the 3% mark as Treasury prices.

With the weaker U.S. labor market data, and as the dollar fell on the back of a surge in the euro, Gold prices had started the session on the front. But the greenback in view of the fact that moved off its lows, keeping cover on upside momentum in the yellow metal.

Technical chart


gold

Technical outlook

Gold prices closed neutral range yesterday and prices broke out above the resistance line wherein “Falling channel pattern” on a daily chart. Gold prices turned short-term bullish as the resistance line has already been broken out and signals were generated that buyers control the market.

But meanwhile, taking some consolidation due to $1305 which is the short term struggling point that has to be controlled. A break and close of a daily candle above the level could continue with a little upside pressure and the next momentum will be upside towards $1315-1325. Support revised to $1288.

   
 
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