Gold Swings with Enduring Buoyancy

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Gold Swings with Enduring Buoyancy

Gold prices are sustaining the consolidation now, but may see a wedge/triangle pattern this month.To get more news about WikiFX, you can visit wikifx official website.
　　The FED Governor Lael Brainard stressed that a flexible average inflation targeting means the inflation may be achieved moderately above 2% for a time, indicating that gold may be more attractive as the Federal Open Market Committee (FOMC) may stick to the status quo at the monetary policy meeting on September .
　　At the same time, markets may continue the current trends with bulls for the U.S. dollar increasing in this month. According to the IG Client Sentiment report, retail traders hold net-long USD/CHF, USD/CAD and USD/JPY, while the crowd remains net-short AUD/USD, NZD/USD, EUR/USD and GBP/USD. The ongoing tilt in retail sentiment may continue to coincide with the bullish behavior in gold as the dollar index is verging below the key support zone.

　　The Relative Strength Index (RSI) requires close attention as it appears to have bottomed out in August. However, the bullish outlook will only greet it when both a breach above 70 and a overbought territory are achieved. This indicator may help to validate the wedge/triangle formation.
　　Until then, gold prices may continue to face range bound conditions. In future tradings, a closing price above the Fibonacci overlap of $1,971-1,985 is necessary for bringing the $2025 region back on the radar.
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