Gold Daily Analysis – August 23, 2017

Gold prices dipped lower on Tuesday in response to a stronger dollar. Traders expect the two-day the Jackson Hole central banking symposium starts on Thursday which provide more information about monetary policy changes.

the Jackson Hole meeting will include speeches by European Central Bank president Mario Draghi and Federal Reserve chair Janet Yellen.

Technical Outlook

 Short Term View

Gold hourly chart has formed the Head and shoulder Chart pattern. The pattern signals a selling pressure and a break below the $1290 level could push prices towards $1283-1272 levels.

Long-term View

Gold prices hit near $1300 on Monday and Tuesday but did not hold above this area and finally closed lower. This indicates Triple top reversal pattern which usually leads to downside pressure.

On the 4H chart, prices have formed the Ascending broadening wedge pattern and continue to rally further on the same direction according to the pattern.A break above $1300 and close of a daily candle will lead towards $1318-1362.

On the other hand, if prices could not break above $1300, a downfall can be expected and the next target will be $1280. Additional long-term support is on the 100-day moving average at $1256.