Gold Daily Analysis – November 1, 2017

Gold prices fell on Tuesday and trade higher on Wednesday morning as investors focus on the Federal Reserve interest rate decision today at 18:00 GMT, Donald Trump’s next Fed chair announcement and the recent terror attack in New York City. Gold is trading at 1281, up 0.80% as of 10:00 GMT.

The Conference Board’s consumer confidence gauge rose to 125.9 in October from 119.8 in September, beating economists’ forecast for a reading of 121.

The better than expected economic reports come ahead of the two-day monetary policy meeting as the Federal Reserve is about to announce its interest rate decision today. President Donald Trump is expected to announce the next Fed chair on Thursday.

Technical View

The current trend has formed the Symmetrical triangle pattern. The pattern reflects consolidation mode and a breakout of one of the sides could determine the next move. This pattern can be traded as continuation patterns.

A break of the resistance or support would lead the market in a new direction. In the meanwhile, the market consolidates itself inside the area. Buy on dips and sell on tops would be a beneficial trading strategy.  Note that, a breakout of the resistance at $1280 and close of a candle would lead upside rally towards $1293-$1300. Alternatively, a breakout of the support would lead the downside rally towards $1250-$1260 level.