The yellow metal continues to challenge at 34dsma and support taking near DEMA. The metal has been trading below the non-profit level of $1,200.00. In the US, CPI data met the expectations, Philadelphia-area factory gauge data soared and the unemployment claims almost unchanged. The US economy is moving at a good pace. Lower yellow metal prices could put pressure on the gold mine production, especially in South Africa. The longer-term picture favors some more downside from the current levels. The gold has been facing strong multiple resistance at $1,197.00. In the hourly chart, the prices are make higher high and higher low formation. This formation will be eliminated in case if the price falls below $1,172.00. We recommend fresh selling below $1,188.00, selling pressure will become stronger below $1,186.00. We can observe distribution patterns in the hourly charts. We can expect $20 or 30$ sudden fall or rise in case the metal comes out of the tight trading range. We can expect a steep fall below $1,146.00. On the upside, resistance exists at $1,197.00 and $1,204.00. In late November, the Swiss referendum will show immediate impact on gold prices. A yes vote will ignite the bullish rally in the short term, but chances are remote.
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