Gold prices edged lower on Tuesday as risk sentiment improves after Hurricane Irma and North Korea tensions eased. Gold was trading at 1337 as of 9:00
Gold prices edged lower on Tuesday as risk sentiment improves after Hurricane Irma and North Korea tensions eased. Gold was trading at 1337 as of 9:00 GMT.
Investors shrugged off threats from North Korea after the United Nations’ new restrictions on the country’s oil imports and limitations on textile exports.
North Korea’s ambassador to the UN, Han Tae Song, told a conference in Geneva: “The forthcoming measures by DPRK (the Democratic Republic of Korea) will make the US suffer the greatest pain it has ever experienced in its history.”
Technical outlook
Gold prices retraced and reached support line at $1330 forming a “Rising Wedge Pattern”. The pattern has reached a resistance area and is likely to stop further upside movement. Support holds at $1330.
Gold Daily Chart
Further movement is likely to rally towards $1370-$1400 level. 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 64%.
