FX Trading Revolution Team
FX Trading Revolution
Alongside the broad slide of the Dollar last week, Gold also staged a strong rebound and returned above the $1200 level.
The reversal in the US Dollar amid Fed's Powell dovish comments last week are also affecting the prices of Gold.
The Fed meeting at the end of September and the future path of rate hikes will be in focus now for the long-term picture. Many are now expecting the Fed to start slowing down the pace of rate hikes sometime next year, rather than accelerating. If the September Fed meeting is dovish and confirms that FOMC officials are not worried about inflation accelerating further above 2% (similar to Powell at Jackson Hole) - then that will likely be seen as dovish and should support Gold and negatively impact the Dollar.
Technically, Gold made an important rebound which could be the end of the bearish trend that started in April. However, the downtrend and the bearish momentum are still strong so it seems that it's a bit too early for a sharp reversal at this stage. Another push toward the $1170 lows can't be excluded at this stage.
The next resistance higher on the weekly chart is at the 38.2% Fib retracement and the previous lows around $1240. The price should stay above $1200 if it's going to continue up for a while longer.
Gold Current Trading Positions
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