Gold prices continue to rise as investors’ concerns rose yesterday after the delay in tax reform and the failure of the health care bill. In addition,
Gold prices continue to rise as investors’ concerns rose yesterday after the delay in tax reform and the failure of the health care bill.
In addition, investors estimate that the Federal Reserve will raise rates at least once more this year, therefore the sentiment on gold has turned positive in recent days.
Technical outlook
Gold prices are trading around the previous support which has now become resistance at $1240. The 4H chart has formed the “Falling wedge pattern”. In this pattern, prices broke above resistance of $1227 which affirms that the price action has turned from bearish to bullish.
Gold 4H Chart
A profit booking correction can be expected that might reach $1230. The overall sentiment indicates a bullish trend that will move towards $1240-$1253 levels.
