Gold Daily Analysis – September 20, 2017

Gold prices traded slightly higher on Tuesday, bouncing back from previous session’s three-week lows after the release of mixed U.S. data. Investors anticipate the two-day Federal Open Market Committee and the conclusion of the Federal Reserve’s monthly policy meeting on Thursday. Gold was trading at 1316.44, up 0.45% as of 8:00 GMT.

At his speech to the UN, President Donald Trump said yesterday: “If [the US] is forced to defend itself or its allies, we will have no choice but to totally destroy North Korea”.  The comments did not gain much attention among investors, as their focus was on the two-day Federal Open Market Committee.

Technical Outlook

Short-Term View

Gold prices have taken a good support yesterday.  Gold will be in the uptrend until it closes below 1307 levels. Buy on dips would be a better strategy until gold closes below these levels. If gold consistently trades above 1307, then the rally is likely to move towards $1324-$1335 levels.

Medium-Term View

Gold daily chart has formed the “Ascending broadening wedge”. In this pattern, prices broke the support line at $1330 which indicates a bearish momentum. It is expected to move towards $1289-$1300. Additional support is on t50-day moving average at $1289 and resistance holds at $1330.