Gold prices edged higher despite a small raise in safe-haven demand on worries about chaos in the Trump administration after Secretary of State Rex Tillerson was fired on Tuesday.
President Donald Trump fired Secretary of State Rex Tillerson, after a falling out on how best to tackle the Iran nuclear deal. Trump hired Central Intelligence Agency Director Mike Pompeo as Tillerson’s replacement.
“When you look at the Iran deal, I think it’s terrible. I guess he thought it was OK,” Trump said. “I wanted to either break it or do something and he felt a little bit differently, so we were not really thinking the same.”
Also adding to positive sentiment on gold prices was an inflation report that while inline with forecasts did little to lift the prospect of a fourth-rate hike being added to the Federal Reserve’s rate-hike projections or so-called dot plot.
Gold daily chart continues in "Falling wedge” pattern. The last few sessions seems consolidated inside the channel. The market is expected to continue in bearish trend along with a small correction over positive momentum to retest the channel’s resistance slope line once again. The downside rally could test all the way through $1320-1310(30202-22952) levels in the upcoming sessions. Alternatively, if the market breaks above the key resistance level holding at $1335(30557) then it might turn to bullish. The upside rally could test $1340-1350(30702-30952) levels. Key Support holds at $1310(22952).
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