Traders are waiting for next week Fed meeting| gold price trading sideway

gold

08-06-2018 10.50 AM

Gold prices were moderately higher as U.S bond yields dropped and the dollar was on path to crack a three-week winning splash, on the other hand traders remained watchful on the yellow metal at the forefront of a extensively expected U.S. rate hike next week.

The in progress sprawl in dollar index positioned the greenback on track to mark a weekly loss for the first time in four weeks, supporting gold prices regardless of investor expectations that the Federal Reserve will hike rates at its meeting next week and disclose a more insistent path for additional monetary policy tightening.

New outlook for a quicker pace of rate hikes come on the back of a sequence of bullish U.S. economy data, supporting investor expectations that the U.S. economy was on a concrete balance.

Technical chart


gold

Technical outlook

Gold prices are closing in neutral range for the past few days and prices broke resistance line wherein “Falling channel pattern” on a daily chart. Gold prices turned short-term bullish as the resistance line has already been broken out. But meanwhile, taking some consolidation due to $1305 which is the short term struggling point that has to be controlled. A break and close of a daily candle above the level could continue with a little upside pressure and the next momentum will be upside towards $1315-1325. Support revised to $1288.