Gold Daily Analysis – September 26, 2017

Gold prices hiked sharply on Monday as the geopolitical tensions on the Korean Peninsula raised investors’ concerns. Yesterday, the North Korean Foreign minister Ri Yong Ho warned that Pyongyang has the right to “shoot down U.S. bombers”.

Ri said: “Since the United States declared war on our country, we will have every right to take countermeasures, including the right to shoot down United States strategic bombers even when they are not inside the airspace border of our country”

According to a report from the Commodity Futures Trading Commission (CFTC) on Friday – Net-bullish bets on gold fell to 236,100.

In addition, Traders will watch Federal Reserve speakers including the central bank’s chair Janet Yellen on Tuesday.

Technical view

Gold’s 4H chart has formed “Falling wedge pattern”.  The pattern has completed 5 cycles and has almost reached the target. The pattern has already broken the resistance line at $1303 and is currently in consolidation mode. If it sustains above $1315 then the rally may continue towards $1325.

On the other hand, a break again below $1300 would push the precious metal further towards $1257.