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Gold Daily Analysis – October 23, 2017

By:
R Ponmudi
Published: Oct 23, 2017, 08:35 UTC

Gold prices dipped lower on Monday morning as investors react to higher US Treasury yields. On Friday, as Gold struggled to cut losses, the sentiment on

Gold

Gold prices dipped lower on Monday morning as investors react to higher US Treasury yields. On Friday, as Gold struggled to cut losses, the sentiment on the dollar turned optimistic on tax reform which is predicted to generate a fiscal lift to the economy.

Gold prices are trading at 1276.5, down -0.29% as of 8:30 GMT.

On Friday, The National Association of Realtors released the report, existing home sales rose 0.7% to an adjusted annual rate of 5.39 million units last month which indicated improvement in the economy.

Technical view

The Gold  4H chart has formed the “Falling Wedge Pattern”. In this pattern, Gold prices were unable to hold above $1294 level. Prices are currently trading in a downtrend channel.

Gold 4H Chart
Gold 4H Chart

The prices broke the support line and a close below 1276 can signal a bearish momentum. A break below could lead to the downside target towards $1250-$1270.

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