Gold prices remained close to four-month high on Wednesday but trade lower on Thursday morning as the precious metal seems to correct the uptrend move.
Gold prices remained close to four-month high on Wednesday but trade lower on Thursday morning as the precious metal seems to correct the uptrend move. Gold is trading at $1328, down 0.77%.
Deutsche Bank commented to gold prices: “We expect gold will shrug off worries of fundamental downside amidst the unwind of accommodative central bank policy, and that the market premium over fair value will widen.”
The bank forecasts gold to fall to at $1,283 an ounce in 2018, which takes into account market expectations of four Fed rate hikes and modest dollar weakness.
Technical outlook
Gold daily chart has formed “Ascending broadening wedge” pattern. Prices are currently correct after the massive rise in prices from $1240.
Gold Daily Chart
The market is likely to continue on the correction, testing all the way through $1315-$1320 levels in the upcoming sessions. Resistance holds at $1335 and Key Support at $1313.
