Gold has been cruising close to its record highs in the past few days but seems to be struggling to bust out of consolidation.
Check out these inflection points I’m watching!
Gold (XAU/USD): 1-hour
Gold (XAU/USD) 1-hour Forex Chart by TradingView
All this talk about the size of the Fed’s potential September rate cut seems to be keeping this precious metal on edge!
Market players are keeping extra close tabs on U.S. data points these days, attempting to gauge if the FOMC is about to announce a standard 0.25% reduction in borrowing costs or a larger 0.50% cut later this month.
With that, shifting expectations have kept this anti-USD asset bouncing back and forth between support around $2,475 and resistance at $2,525 near R1 ($2,527.37).
Can the upcoming U.S. CPI release keep gold prices in this range?
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on the U.S. dollar and gold, then it’s time to check out the economic calendar and stay updated on daily fundamental news!XAU/USD has been edging higher so far this week, climbing within striking distance of the range resistance once again.
Keep an eye out for reversal candlesticks around this area that could attract gold bears and send the precious metal back down to the area of interest around $2,500 and the pivot point level or all the way down to the bottom of the range.
Just the same, keep your eyes peeled for long green candlesticks suggesting a upside break of the range resistance since these could convince gold bulls to charge to fresh record highs.
Don’t forget to practice proper risk management and stay aware of top-tier market catalysts when trading this one. Good luck!