Gold Daily Analysis – November 23, 2017

Gold prices edged higher on Wednesday but trade slightly lower on Thursday morning after the release of the Federal Reserve November meeting minutes weighed on the US Dollar. Gold is trading at $1289.75, down -0.19% as of 9:30 GMT.

The yields on short-term bonds are higher than the yields on long-term bonds which raised concerns over the long-term growth of the economy, hence, raising demand for the precious metal.

The Commerce Department said on Wednesday: “non-defense capital goods orders excluding aircraft, a closely watched proxy for business spending plans, fell 0.5% last month after an upwardly revised 2.1% increase in September”.

Technical View

Gold four-hour chart continues in the “Ascending broadening wedge” pattern and the last session approved the trend. The market has retested the strong resistance level inside the channel which has also triggered a change in the momentum. Gold stays in the range.

“Now it’s time for a correction”.  If gold could not break the resistance, the market is expected to fall for a while and slide towards $1288-$1286 levels in the upcoming session. Resistance holds at $1294 and support holds at $1286.