Gold prices rose to near one-year highs on Tuesday as a weak dollar and geopolitical uncertainty increased demand for gold after North Korea’s largest and most powerful nuclear test over the weekend.
Federal Reserve Governor, Lael Brainard said in his comments that the U.S. central bank will delay its rate hikes until inflation numbers will be improved.
Technical View
Gold reached the resistance area which is a crucial technical level at $1349. Prices are likely to retest the $1325 which is the support line. As per our previous outlook, prices rebounded from $1325 which is a profit booking area.
Gold Daily chart has formed a “Rising Wedge Pattern“ and continue to rally further on the same direction according to the pattern. An additional support holds at $1310. Further upside rally would be towards $1350-1362.