Gold prices edged higher on Friday after the North Korean leader Kim Jong Un vowed to make a “mentally deranged” Trump pay for an earlier threat to “totally destroy” North Korea if threatened America or its allies.
However, Gold is trading lower on Monday morning after a break of important support.
In addition, hawkish Fed pushed prices down. According to the Federal Reserve, the current outlook is for another rate-hike by the end of 2017.
Short Term View
The 4h chart has formed a “Falling wedge pattern”. The pattern has completed 5 cycles and has almost reached the target. Currently, prices broke below $1300 and trade around $1294. Next support holds at $1290.
On the other hand, if gold could not break below $1290 and will retrace back to previous sessions prices, then the sentiment will be very bullish.
This article was originally posted on FX Empire