The breakout in gold was a beautiful setup that saw the metal grasp at the $4k level for more than a month before bulls finally took a step forward two weeks ago. And they wasted little time, with higher-highs and lows developing to illustrate a bullish trend building, all the way until a key spot of resistance came back into the picture at the $4380 swing, taken from the resistance last October that came in as support in February and March.
A crushed US Dollar sends Gold into a rally above $4,400
Gold is moving higher as traders bet that Fed will keep rates unchanged at the next meeting in September.
Gold (XAU/USD) price forecast: Gold faces rejection at 0.618 arc; Potential decline toward $4,415
XAU/USD Price forecast: Gold maintains the upside pressure above $4,400
The gold market has continued to be very noisy as we are bouncing around just below the $4,500 level, an area that would cause a lot of resistance and headline noise.
Gold: Investors extend longs but hedge risks – TD Securities
Gold was higher first thing this morning, extending its gains made on Friday when softer US retail sales data undermined the dollar. But with the US-Iran situation continuing to drag on, oil prices are remaining elevated, and this is helping to keep inflationary pressures intact and supporting bond yields.
Prices managed to hit a rebound towards the 4407 resistance. As we see over the chart, the market could head for another drop toward 4260 and below.
Gold prices hold firm as a softer dollar and lower Treasury yields offset oil-driven inflation risk before Fed minutes.
Gold holds near $4,400 as fading Fed rate hike bets weigh on US Dollar
Gold Price Forecast: XAU/USD holds bullish bias near $4,400