There are all the chances to see the breakout if some conditions are met. First, we don’t need strong USD. The lower the chances of a more aggressive tightening from the Fed, the better for yellow metal.
Second, low globally. The weaker the price pressure all over the world, and especially in the US, the stronger arguments for gold buying. Right now Euro zone, and US CPI is staying below the 2% target level, and UK CPI has slowed down to 2.6% from 2.9% in June.
Third, geopolitics. North Korea issue is still on the table, and every time we see tensions escalation, risk-off sentiment will be triggering the demand on gold .
And the last, but not the least. Recently, gold ETF’s has shown a modest build, and large investors are favoring gold once again. And it’s a good sign of market sentiment changes.
Thus, the breakout of $1,300 may be just a matter of time, and once the deal is done, it opens the way to next strong around $1,300.