The chart shows where major support and resistance is, and is there to indicate the trend. On smaller time frames you'll notice that Gold has over the past week firmly stayed at 1275, rather than dipping lower. The fact that this is happening near a turning point in a major downtrend may indicate that this an early signal to get long. If Gold moves above 1300, this would have broken the pattern of 'lower highs' over the last 12 months.
The technical i.e. price action, always drives my core view. But we could support this view with a few factors:
1. Trump has responded to N Korea's aggression with an announcement that almost certainly spells military action
2. With 9 consecutive record high closes on the Dow, and coming off levels of all-time low US equity volatility, investors may be more inclined to rotate into Gold
3. August to September is a seasonally weak time for most equity sectors
The technical i.e. price action, always drives my core view. But we could support this view with a few factors:
1. Trump has responded to N Korea's aggression with an announcement that almost certainly spells military action
2. With 9 consecutive record high closes on the Dow, and coming off levels of all-time low US equity volatility, investors may be more inclined to rotate into Gold
3. August to September is a seasonally weak time for most equity sectors