Gold is holding steady as the new week begins after rebounding from a monthly low ($1907). US Dollar weakness could keep the precious metal supported in September.<\/p>\n
Gold hit its 50-Day SMA ($1912) for the first time in almost 3 months whilst still trading within August\u2019s range. The price easing back from the record high ($2075) could be gold pausing for breath rather than the end of the bullish trend after the yellow metal has traded at fresh yearly highs each month this year, yet the moving average tracks the positive slope from an earlier period.<\/p>\n
Gold shrugged off the latest US jobs report indicating that the price of gold will consolidate even as US Dollar traders return after the Labor Day public holiday. Furthermore, Gold could see range bound conditions as the Fed\u2019s monetary policy meeting on September 16 comes into view and as the Fed prepares to release the updated Economic Projections (SEP).<\/p>\n
The new forecasts could prompt a shift in monetary policy as the Fed weighs up an outcome-based approach versus a calendar-based forward guidance. With the US elections just 2 months way and the Fed planning to shift policy framework to ATR the Fed will most likely stick to the status quo<\/p>\n
The FOMC may continue to \u201cincrease its holdings of Treasury securities and agency residential and commercial mortgage-backed securities at least at the current pace,\u201d combined with more of the same from the Fed Chair Jerome Powell support up gold prices as the Fed\u2019s balance sheet pushed back above $7 trillion in August.<\/p>\n
For now,\u00a0 gold could \u00a0consolidate further as global equity indices come under pressure, with the NASDAQ 100 and S&P500 on shaky ground US Dollar weakness may continue to coincide with the stronger \u00a0gold prices as a bear-flag formation emerges in the DXY index.<\/p>\n","protected":false},"excerpt":{"rendered":"
Gold is holding steady as the new week begins after rebounding from a monthly low ($1907). US Dollar weakness could keep the precious metal supported in September. Gold hit its 50-Day SMA ($1912) for the first time in almost 3 months whilst still trading within August\u2019s range. The price easing back from the record high […]<\/p>\n","protected":false},"author":163946597,"featured_media":5300,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1381],"tags":[1398],"class_list":{"0":"post-104429","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-usd","8":"tag-usd"},"acf":[],"yoast_head":"\n