Gold Daily Analysis – December 28, 2017
Gold prices settled higher on Wednesday and continue to trade higher on Thursday morning for eight consecutive positive sessions as the dollar continues to weaken versus major currencies and commodities. Gold futures remained near four-week highs at $1295.50, +0.30%.
According to the National Association of Realtors – pending home sales were mostly unaffected in November, rising by 0.2% month-on-month which peaked expectations for a 0.4% decline.
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Yesterday, The Conference Board’s consumer confidence was released and fell to 122.1 in December from a revised reading of 128.6 in November, missing economists’ forecast for a reading of 128 which adds pressure on the dollar.
Technical view
Gold 4H chart has formed a “falling wedge” pattern. The last few sessions have canceled the bearish trend and gold might retest November’s high at $1305.
As per the technical aspects, the market is expected to continue the same trend and the rally could test $1296-1305 levels in the upcoming sessions. Resistance holds at $1305 and previous resistance become the support at $1280.