Gold Daily Analysis – September 19, 2017

Gold prices dipped lower on Monday and continue to remain under pressure on Tuesday morning. Investors react to the North Korea tension which eased in the last days. The US dollar moved higher ahead of the Federal Reserve’s two-day meeting on Tuesday and Wednesday.

Terry Morris, senior vice president and senior equity manager for National Penn Investors Trust Company said: “Investors have been programmed to more or less ignore stuff with Korea. The last two or three times this kind of thing occurred we went down a little, only to turn back higher. We’ve learned to buy on the dips.”

Technical View

Gold hits its first level of the target at $1307. The hourly chart has formed the “Head and shoulder chart pattern” which is a reversal pattern. The downside pressure could lead towards $1300 level and could continue to weigh upon the market as it is a head and shoulder reversal pattern.

The daily gold chart has formed “Ascending broadening wedge”. In this pattern, prices broke the support line at $1330 which indicates a bearish momentum.

Gold prices are expected to move towards $1289-$1300. Additional support would be on the 50-day moving average at $1289 and resistance hold at $1330.