Gold Daily Analysis – November 15, 2017

Gold prices edged higher on Tuesday and trade slightly higher on Wednesday morning as the dollar weakness boosted the demand for the precious metal. Gold was trading at $1284, +0.11% as of 8:44 GMT.

According to the Labor Department on Tuesday – US producer’s price index increased 0.4% last month. In the 12 months through October, the PPI rose 2.8% after rising 2.6% in September.

Note that Gold is currently sensitive to the rising political uncertainty in the UK amid reports of Tory rebellion mounting against UK Prime Minister Theresa May, and the uncertainty over the US tax reform that continued to weigh on risk sentiment.

Technical View

The technical chart of Gold 4 H market has formed a “Rectangle chart pattern” which shows a clear accommodation of both positive and negative momentum in the market in the last few weeks. Although gold is trading higher, prices remain in the range. A break out of the range might signal gold’s next direction.

The market seems to be trading in sideways and the previous session has ended up bullish which means a correction to the downside is expected. The market in the upcoming sessions could test again $1272-$1276 levels. Resistance holds at $1288 and the support holds at $1269.