Gold has had a busy month of August. After breaking down during a 'flash crash' two weeks ago, prices scraped just above the 1680 yearly low. That support held and price action came screaming back in the early portion of last week.
That led to a bit of range but on the open of this week, another breakout, with Gold re-engaging back-above the 1800 level.
Bulls haven't yet backed down and the USD has continued to sell-off. That USD sell-off appears to be positioning ahead of Jackson Hole, where there's waning expectations for any announcement of taper. And given what stock prices have done this week, it seems as though fears around delta are grounding expectations for the Fed to make any actual moves.
Continued dovishness at Jackson Hole could bring continued weakness in USD, which could further buoy gold prices.
The big level here isn't the current resistance but the zone above, around the 1834 level. That price turned around two advances and this forms a potential double top formation. That double top has massive potential on the projection given the prior run down towards 1680.
But, not a double top until the top is traded through.
That led to a bit of range but on the open of this week, another breakout, with Gold re-engaging back-above the 1800 level.
Bulls haven't yet backed down and the USD has continued to sell-off. That USD sell-off appears to be positioning ahead of Jackson Hole, where there's waning expectations for any announcement of taper. And given what stock prices have done this week, it seems as though fears around delta are grounding expectations for the Fed to make any actual moves.
Continued dovishness at Jackson Hole could bring continued weakness in USD, which could further buoy gold prices.
The big level here isn't the current resistance but the zone above, around the 1834 level. That price turned around two advances and this forms a potential double top formation. That double top has massive potential on the projection given the prior run down towards 1680.
But, not a double top until the top is traded through.