Gold Daily Analysis – September 7, 2017

Gold prices dipped lower on Wednesday after President Donald Trump agreed to raise the debt ceiling and extend the government funding through Dec.15. Gold is trading higher on Thursday morning ahead of ECB meeting.

Comments from Federal Reserve officials that the U.S. central bank will drop its plan to hike rates later this year caused losses in gold as expectations on additional U.S. rate increases faded.

Neel Kashkari, Minneapolis Federal Reserve Bank President commented: “The Federal Reserve’s recent interest rate hikes may be slowing inflation and inflicting real harm on U.S. economic growth.”

Technical View

Gold prices tested the resistance area which is a crucial technical level at $1349. The first level of the target has been completed and prices have been in consolidation. It is likely to retest the $1325 which is a support line.

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