Gold futures on Comex is seen moving further away from fresh one-week highs reached at $ 1204.60 in early Asia, as the bulls take a breather and turn cautious ahead of the US-China trade talks and FOMC minutes due later on Wednesday. What is next? Stay updated in the following 22 August Gold Price Technical Forecast.
22 August, OctaFX – The yellow metal is back at the $ 1200 mark, now heading for a test of Tuesday’s low at $ 1194.30, as the US dollar is seen catching a fresh bid versus its main peers amid expectations that the trade tensions between the US and China may ease.
Gold Fundamental Highlights
The latest comment by the Chinese Foreign Ministry cites that it hopes the trade talks with the US can produce a good outcome.
However, the retreat could be capped by negative Treasury yields and cautious pre-FOMC minutes trading, as markets continue to weigh in Trump’s displeasure with the Fed’s rate hike policy late-Monday.
Attention now turns towards the US housing data and FOMC minutes due later in the NA session while any development around the US-China trade talks will also have a significant influence on the USD-sensitive gold.
22 August Gold Price Technical Forecast
The key resistances are aligned at $1204.60/65 (weekly top/ 20-DMA) ahead of $1212 (Aug 13 high) and $1232 (50-DMA). On the downside, supports could be seen at $ 1194.30 (Aug 21 low), $ 1190 (round number) and $1182 (Aug. 20 low).
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