Gold Daily Analysis – October 18, 2017
Gold prices dipped lower on Tuesday on the strong US dollar and investors’ hope that the next head of the Federal Reserve will take aggressive measures on monetary policy. Gold is steady on Wednesday morning to trade around $1285.
According to a report released by the Labor Department on Tuesday, U.S. import prices for September recorded their biggest increase in more than a year rising 0.7% a month, whereas the expectations for a 0.5% rise.
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The Federal Reserve said on Tuesday that U.S. industrial output rose 0.3% in September as construction and utility production recovered following the impact of Hurricanes Harvey and Irma last month.
Technical view
Gold prices have already broken out the Falling wedge pattern and have given a buy signal. The last rise indicates the formation of Elliot wave theory. The first impulse wave is picked at $1309, and next, the second corrective wave indicates a drying up of selling pressure as it ends at $1283 which is a strong support. It is likely to extend the rally towards $1370. A break below and waves theory will be canceled.
The next impulse third wave usually generates the greatest volume and price movement is expected to travel towards $1338.