Rising wedge pattern
Gold futures for June delivery show the rising wedge pattern. Prices broke below the lower upward trending line on May 19, 2015. Gold prices have been fluctuating between $1,180 and $1,220 per ounce since the last week of March 2015. The appreciating dollar and week demand from India could drive gold prices lower.
The recent change in momentum suggests that gold prices could hit the support of $1,150 per ounce. Gold prices hit this level in March 2015. Slowing demand from China would drive gold lower. In contrast, energy inflation might push gold higher. Gold prices could see resistance of $1,250 per ounce. Prices tested this level in February 2015.
The rising wedge and rectangular trading range pattern suggests that gold prices will broadly fluctuate between $1,180 and $1,240 per ounce in the near term.
Lower gold prices negatively affect gold miners like New Gold (NGD), Gold Fields (GFI), and Royal Gold (RGLD). These companies account for 10.46% of the VanEck Vectors Gold Miners ETF (GDX). They also impact gold ETFs like the iShares Gold Trust (IAU).