Gold prices hit one-year high on Friday after New York Fed president William Dudley’s commented on the US monetary policy tightening. Prices, however, fall on Monday morning as risks recede. Gold is trading at $1342.15, down 0.68% at the time of the report.
Dudley, one of the central bank’s key decision-makers said: “It’s too soon to judge exactly the timing of when the next rate hike might occur, but the path is still clear that short term rates are going to move higher”
Technical View
Gold Daily chart has formed a “Rising Wedge Pattern“. The pattern has reached a resistance area and is likely to stop rising. An additional support holds at $1333. The next upside rally would be towards $1362-1400.
Overbought indication RSI (relative strength index),
The RSI indicates overbought reading 76%. Support holds at $1340 level. A break above $1370 could lead to $1400 level. As per the previous outlook, prices retraced from $1340 which is a profit booking area.