Gold oscillated in a narrow trading band on Wednesday, consolidating two days of recovery gains to nearly two-week high.
Currently hovering around $1262 level, the ongoing recovery momentum in the British Pound helped ease US Dollar's bullish momentum and is benefitting dollar-denominated commodities - like gold. Moreover, signs of inflation picking-up in the US and UK, as depicted by the latest CPI print, provided an additional boost and lifted the precious metal on Tuesday.
Meanwhile, the prevalent cautious sentiment in European equity markets is extending support to traditional safe-haven assets and assisting the yellow metal to hold on to recovery strength recorded since the beginning of this week to 7-day high.
The commodity, however, remained capped below the very important 200-day SMA and as Carol Harmer, Founder at charmertradingacademy.com, notes "Gold has broken out of its little continuation pattern...now to confirm we need it to break 1265...If we can do this then we are on our way to 1275 and possibly then beyond..."
Technical outlook
Carol Harmer further writes, "we retraced 38.2 on the weekly charts and that was quite a bullish signal....this means that the weekly has superseded the daily pattern...and unless we see a close back below 1257 the market will now trade higher...if above 1275 we look for 1287 as a nearby targeted area....Weekly charts look oversold, and beginning to turn...so a move higher should not be surprising...Go with the price....look for further strength...and as I have said...oly a break below 1257 would make the market look weaker once more and see a return to the base of the pattern located down at 1245...."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD falls back toward 1.1150 as US Dollar rebounds
EUR/USD is falling back toward 1.1150 in European trading on Friday, reversing early gains. Risk sentiment sours and lifts the haven demand for the US Dollar, fuelling a pullback in the pair. The focus now remains on the Fedspeak for fresh directives.
GBP/USD struggles near 1.3300 amid renewed US Dollar demand
GBP/USD is paring back gains to trade near 1.3300 in the European session. The data from the UK showed that Retail Sales rose at a stronger pace than expected in August, briefly supporting Pound Sterling but the US Dollar comeback checks the pair's upside. Fedspeak eyed.
Gold hits new highs on expectations of global cuts to interest rates
Gold (XAU/USD) breaks to a new record high near $2,610 on Friday on heightened expectations that global central banks will follow the Federal Reserve (Fed) in easing policy and slashing interest rates.
Pepe price forecast: Eyes for 30% rally
Pepe’s price broke and closed above the descending trendline on Thursday, eyeing for a rally. On-chain data hints at a bullish move as PEPE’s dormant wallets are active, and the long-to-short ratio is above one.
Bank of Japan set to keep rates on hold after July’s hike shocked markets
The Bank of Japan is expected to keep its short-term interest rate target between 0.15% and 0.25% on Friday, following the conclusion of its two-day monetary policy review. The decision is set to be announced during the early Asian session.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.