Gold prices dipped lower on Friday but trade slightly higher on Monday morning as investors took profit on recent gains. The German geopolitical uncertainty eased following a slight increase in US Treasury yields which weighed on sentiment.
Germany’s Social Democrats leader said it would consider talks with Angela Merkel’s Christian Democratic Party to form a government.
According to Hubertus Heil, the general secretary: “The Social Democratic Party (SPD) is firmly convinced that talks should take place. The SPD is not closed to talks.”
Easing geopolitical confusion increased United States 10-Year to session highs, limiting the upside momentum in the precious metal.
Technical view
Gold 4H chart has formed the “Ascending broadening wedge” pattern. The Last market session seems a bit consolidated but bearish in trend as it retested the resistance level which is now holding at $1293. The market will continue the same trend if gold breaks below the support level at $1287.
Alternatively, if support holds, then the market might continue its bullish momentum and might extend above $1295 levels in the upcoming sessions.