Gold Price Headed for a Break, may Turn Lower on Sour Sentiment

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Fundamental Forecast for Gold:Bearish

Gold Talking Points:

  • Gold vulnerable to a breakout lower as sentiment sours and safe haven demand wanes
  • Markets have already priced in a hike at next week’s Fed rate decision
  • Retail positioning remains bullish with 87% of clients net-long

Gold Price Beholden to Trend Lines

Gold posted a moderate rally this week, trading higher until Friday when the metal surrendered earlier established gains. Heading in to Friday’s close, gold is set to close only slightly above the week’s open. Also on Friday, the hourly chart reveals multiple tests of short-term support which dates back to mid-August.

Gold Price Chart 60-Minute Time Frame, September 14th – September 21st

Gold Price Headed for a Break, may Turn Lower on Sour Sentiment

Together with the resistance posted from gold’s decline beginning in April, the metal is quickly running out of room to trade within the two levels. Next week will see a significant development in the metal’s price when a break occurs.

Look for events like

Article source: https://www.dailyfx.com/forex/fundamental/forecast/weekly/chf/2018/09/21/Gold-Price-Headed-for-a-Break-may-Turn-Lower-on-Sour-Sentiment.html