Gold Daily Analysis – October 10, 2017

Gold prices settled higher on Monday as an increase in geopolitical uncertainty raised demand for the safe-haven gold. However, gains have limited as investors expect that the Federal Reserve will hike rates for the third time this year. Gold prices continue to rise on Tuesday morning and trade at 1290.25, up 0.38% as of 8:00 GMT.

President Trump said: “the United States has been unsuccessfully dealing with North Korea for 25 years, insisting that only one thing will work to curb the isolated nation’s efforts to further develop nuclear weapons”. His comments raised fear among investors that the president is planning a military action against North Korea.

Technical View

Gold prices traded on consolidation mode and have broken the resistance slope line at $1280 followed by a “Falling Wedge Pattern”.  Currently, prices are expected to move towards at $1295-$1303 level.

In this pattern, the current trend seems like a sideway market, and we can expect a small bouncing momentum towards $1300 levels in the upcoming days. Alternately, if the market breaks out the Channel’s Support line, then the momentum will be bearish again.