Gold Daily Analysis – January 25, 2018
Gold prices climbed sharply on Wednesday and continue to trade slightly higher on Thursday morning as the dollar weakens amid growing fears of a US-China trade war.
The dollar came under heavy selling pressure, increasing demand for gold, after Treasury Secretary Steven Mnuchin commented that a weak dollar is good for the US economy.
Your capital is at risk
According to Bloomberg, Mnuchin told reporters in Davos: “Obviously a weaker dollar is good for us as it relates to trade and opportunities.”
Technical outlook
Gold daily chart has formed “Triple top chart” pattern. The trend remains bullish as gold prices hit the third top of the pattern and are trading above the second top.
If the market breaks and closes above the pattern’s resistance level at $1367, then it might continue in the bullish momentum and could test $1425 levels in the upcoming sessions. RSI is currently at 75.