01-06-2018 11.05 AM
Gold prices traded in a narrow range on Wednesday. Gold prices persistently swing around the $1,300 level as rolling U.S. bond yields limited gains from a stab in the dollar.
Gold demand eased as expectation surfaced for the formation of an elected coalition government in Italy after Italy’s designate Prime Minister Carlo Cottarelli was reportedly contemplating “new possibilities” to form a government.
Resentful U.S.-China relations added a little support for gold after China said it was ready for any trade war.
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.
Gold prices moved on resistance line where “Falling Wedge pattern” is on a daily chart. For the past one week, Gold prices were unable to break and close above at $1305, which is the consolidation area with the psychological prices sentiment at $1300. The gold trend is currently neutral. Further factors will be decided upon, if it breaks above $1305 then it would turn bullish towards $1315-1325. In the alternate scenario if it is unable to break above, then selling pressure will be enabled and would continue to ream on the negative side towards $1290-1275 level.