Gold has risen to record highs over the past few days, but it appears to be struggling to break out of consolidation.
Check out these turning points I’m watching!
Gold (XAU/USD) Forex 1 Hour Chart by TradingView
All this talk about the size of the Fed’s potential rate cut in September seems to be keeping the precious metal on the edge!
Market participants continue to closely monitor U.S. data these days, trying to gauge whether the Federal Open Market Committee is about to announce a record 0.25% cut in borrowing costs or a larger 0.50% cut later this month.
However, the changing outlook has kept this anti-USD asset swinging back and forth between support at $2,475 and resistance at $2,525 near R1 ($2,527.37).
Can the next one US CPI Release Can we keep gold prices in this range?
Remember that directional biases and volatility in market prices are usually driven by fundamentals. If you haven’t done your homework on the US dollar and gold yet, it’s time to take a look at the economic calendar and stay up to date with the daily fundamental news!
The XAU/USD pair has risen so far this week, rising close to the resistance range once again.
Look for reversal candles around this area which could attract gold bears and send the precious metal to the area of interest around $2500 and the pivot point level or to the bottom of the range.
However, keep your eyes open for long green candles that signal a break of the resistance range to the upside, as these candles could convince gold bulls to head to new highs.
Don’t forget to practice proper risk management and stay aware of top-tier market triggers when trading this product. Good luck!