Gold Daily Analysis – September 5, 2017

Gold prices rose to one-year highs on Monday, after North Korea posed new threats that it had conducted a test of a hydrogen bomb planned to be mounted on an intercontinental ballistic missile.

In response to the fresh threat, the U.S President Donald Trump warned a massive military attack if the US or its allies will be threatened and added to cut off trade with any country that trades with North Korea.

Gold futures rose 0.44% to $1336.25 as of 8:00 GMT.

Technical View

Gold reached the resistance area which is a crucial technical level at $1345. It is likely to retest $1325 which is a support slope line. As per the previous outlook, prices rebounded from $1325 which is a profit booking area.

Gold Daily chart has formed the “Rising Wedge Pattern“ and continue to rally further on the same direction according to the pattern. An additional support holds at $1310. A further rally would be towards $1350-1362.