Gold Daily Analysis – September 12, 2017

Gold prices edge lower on Tuesday morning as risk sentiment improves after Hurrican Irma and North Korea tensions eased.

Hurricane Irma potential damage eased as traders were concerned over the impact of the storm on the U.S. economy.

According to Michelle Meyer, head of U.S. economics at Bank of America Corp in New York: “Irma will create further weakness in indicators that are already softening as the result of the hurricane,”

Without further missiles or nuclear tests from North Korea, safe haven assets’ demand decreased since the beginning of the week.

Technical outlook

Gold prices retraced and reached the support line at $1330, forming a “Rising Wedge Pattern”.

The pattern has reached a resistance area and is likely to stop the upside movement. Support holds at $1330 and additional support holds at $1320. A break below could lead towards $1300. On the other hand, if prices fail to break below, the next upside rally would be towards $1362-1400. The RSI indicator reduced from 76%to 59%.