Gold extended its consolidative price action through the mid-European session and is currently holding with modest daily gains around the $1177 region. What does the technical set up next reveal? Find out in the following 17 August Gold Price Technical Forecast.
17 August, OctaFX – The commodity failed to capitalize on previous session’s goodish rebound from 19-month lows and has been oscillating in a narrow trading range over the past 24-hours or so, despite a combination of supporting factors.
Gold Fundamental Highlights
The US Dollar held on the defensive on the last trading day of the week and risk-aversion seems to have come back in play, amid some fresh weakness seen in the Turkish Lira, albeit did little to provide any meaningful impetus.
Market expectations that the Fed will stick to its gradual monetary policy tightening through the end of this year seemed to be the only factor keeping a lid on any meaningful up-move for the non-yielding yellow metal.
Hence, overnight recovery might now be seen as a short-covering bounce from near-term oversold conditions, clearly suggesting that the well-established bearish trajectory might still be far from over.
17 August Gold Price Technical Forecast
The formation of a bearish continuation pattern – pennant, on the shorter time-frame adds credence to the negative outlook and thus, creates an opportunity to initiate some fresh bearish positions, even at current levels.
Having said that, a sustained move beyond $1180 level might negate the bearish bias and trigger a near-term short-covering bounce and lift the commodity further towards testing $1191-92 supply zone en-route the $1200 handle.
This article about 17 August Gold Price Technical Forecast was provided by OctaFX. It should substitute for professional marketing consulting. Forex margin trading involves substantial risks. Forex margin trading exposes participants to risks including, but not limited to, changes in political conditions, economic factors, and other factors. All of which may substantially affect the price or availability of one or more foreign currencies.