Gold prices have consolidated in resistance trend line

gold

28-05-2018 10.30 AM

Gold prices moved back and forth around the vital $1,300 level brushing aside dollar strength and lessening geopolitical indecision following Trump’s reverse search on the North Korea summit.

Gold stayed supple in the wake of a resurgent dollar on the back of positive economic data as durable goods orders topped expectations reiterating investor assurance in the U.S. economy.

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 94.13.

The Fed’s preferred measure of inflation currently sits at 1.9%, just shy of the U.S. central bank’s 2% target. But recent data including two regional manufacturing surveys has stoked expectations for an uptick in price pressures.

Technical chart



gold

Technical outlook

The gold prices bounced back and hit the resistance line which has formed “Falling Wedge pattern”. As this is a daily chart, prices are currently to meet out the resistance area around $1305. The prices are unable to go above the level due to selling pressure and continues to push downside side. As a result, it is likely to extend the selling pressure towards $1290-1275 level in the upcoming session.

   
 
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