Gold prices rise on Monday morning after China second quarter GDP and retail sales figures for June were released above analysts expectations.
U.S. inflation data raised concerns whether the Federal Reserve will raise its interest rates for a third time this year; as a result, gold prices climbed to two-week high on Friday. Gold is trading at 1230.25, +0.19%.
Technical Outlook
Gold prices broke out the resistance of $1227. Currently, as seen in the chart, gold support holds at 1220.
The daily chart has formed the “Falling wedge pattern”. As prices broke above the resistance line of $1227, it affirms that the price action has turned from negative to positive.
Short term support is seen at $1220. A break below this point and the market will be dominated by sellers. A fall in price is expected to reach towards $1204.