Gold on Wednesday 13th July 2017, Gold prices up by (17) pts closed at 27851 trading range between 27802 – 27977 and August Comex Gold futures settled at $1219.10 division of the New York Mercantile Exchange.
Gold rose on Wednesday, after Federal Reserve chair Janet Yellen’s testimony to congress revealed that the central bank believes it would not have to lift rates “all that much” to reach the neutral fed funds rate, pointing to a slower pace of future rate hikes.
The Fed “continues to expect that the evolution of the economy will warrant gradual increases in the federal funds rate over time,” Yellen said in her prepared testimony.
Gold prices reached higher slope resistance place but were unable to break above the line which reflects consolidation mode.
As per my technical observation the daily chart has taken the formation of “Falling wedge pattern”. In this pattern, it breaks above the slope resistance line at $1227 (28000) and closes the daily candle. Only on such a circumstance we can make sure that market turned negative to positive momentum. Otherwise, the gold prices can be considered to be still negative. Gold prices are expected to move to $1225(27950).
Today can be considered as an important day as the direction would be decided. To be precise, If it breaks above the slope line then gold prices will be under buyer’s control, vice versa on other hand if its unable to break it would be under seller’s control. Further bearish movement could be noted to reach $1195-$1984(27300-27000) once it breaks below $1204(27600).
We should treat this occasion as a selling opportunity as on every occasion the market reaches lower and low once it touches the resistance line.