Gold prices dipper lower which was above six-week lows on Wednesday as dollar continued its strength after uncertainty over a possible US government shutdown eased.
According to reports – the GOP leadership in the House and Senate want to pass a bill that would extend the government shutdown deadline to Dec. 22 from Dec. 8. As an outcome, gold prices struggled to hold on to gains.
Gold future market 4H chart has formed “Right-angled broadening ascending” pattern. As per the technical aspects, the last market session seems to have ended up meeting with a lower flat support level holding at $1266(28950). Once the market breaks below the support level then sell signal will be confirmed and a downside rally could test $1263-1260(28875-28800) levels in the upcoming sessions. Alternatively, if support holds strong then the market might turn bullish. Resistance holds at $1270(29050).