Gold Daily Analysis – December 13, 2017
Gold prices dipped lower on Tuesday, hit a five-month low on the dollar strength. The expected rate hikes in 2018 continue to pressure gold prices lower. Gold prices trade slightly higher on Wednesday morning but remain near yesterday’s low at $1243.
The PPI index was released yesterday at 0.4%. In the 12 months through August, the PPI rose 3.1% after rising 2.8% in October, whereas the economists’ forecast was 2.9% for November.
Bank of Montreal said that although markets are pricing about two hikes for 2018, a strong consumer inflation report could alter the Fed’s future monetary policy plans.
Tonight, the Federal Open Market Committee is expected to reveal an update of economic projections, which could shed light on monetary policy.
Technical view
Gold daily chart has formed a “Symmetrical triangle” pattern which continues its bearish momentum and broke previous support lines.
The market has consolidated on a tight range for the past two days and the support holds at $1238. Once it breaks the previous low, the downside trend could continue towards $1211-$1230 area. Resistance holds at $1255.
This article was originally posted on FX Empire