Gold Price Outlook Talking Points:
- Gold prices[1] have continued to meander despite the deeper breakdown in the US Dollar[2].
- Gold prices remain in a bull flag formation, and the key driver here appears to be the FOMC[3] and the potential for the bank to get even more-dovish at rate decision in October and December of this year.
- DailyFX Forecasts are published on a variety of markets such as Gold[4], the US Dollar[5] or the Euro[6] and are available from the DailyFX Trading Guides page[7]. If you’re looking to improve your trading approach, check out Traits of Successful Traders[8]. And if you’re looking for an introductory primer to the Forex market, check out our New to FX Guide[9].
Gold Prices Continue in Bull Flag Despite USD-Breakdown
The US Dollar breakdown has continued into another week and Gold prices remain in a congested state, sticking to the bull flag formation[10] that was looked at last week. And while it may be easy to begin harboring bearish hints towards Gold prices given this failure to press up to fresh highs as the USD has fallen to fresh lows[11], the longer-term backdrop in Gold does remain supportive for higher prices, at some point, as the bull flag formation hasn’t yet retraced more than 23.6% of that prior major move.
As looked at around last week’s open, Gold prices started a bullish move last August[12] that hastened through Q4 of 2018. Along the way have been two significant areas of pause: From February into June and again in July of this year. The current case of digestion is
