Gold Turned Positive
25-05-2018 11:02 AM
Gold prices moved more than 1% on Thursday on the support of rising safe-haven demand as U.S. President Trump called off the Singapore meeting with North Korea, scheduled for next month.
Trump blamed North Korea’s recent inflammatory comments and “open hostility” for the cancellation of the summit and warned the U.S. military was standby if needed.
Trump said in a letter to Kim "Sadly, based on the tremendous anger and open hostility displayed in your most recent statement, I feel it is inappropriate, at this time, to have the long-planned meeting,".
The gold prices rallied and closed on resistance line at the occurrence of “Falling Wedge pattern”. As it's a daily chart, and the prices are currently to meet out resistance area around $1305, the further direction will be considered. The point to be noted here is that, if it closes above the trend line, then it would turn bullish with more strength towards higher range $1312-1320 level. In an alternate scenario, when the price is unable to break and close above, it will turn negative and enable the selling pressure towards $1290-1275 level in the upcoming session. Traders should monitor which side does it travel and take decisions as the market stands over the middle line of the trend currently. We can wait for the toss and decide which side can we go for it.