How does the yellow metal trade today? Study this 28 August Gold Price Trading Outlook from OctaFX’s analyst to have an idea.
28 August, OctaFX – Gold futures on Comex entered into a consolidative near $1216 region heading into Europe, having hit fresh two-week highs at $1218.90.
28 August Gold Price Trading Outlook
The retreat in the yellow metal is mainly driven by broad-based US dollar bounce from three-week lows of 94.68, as risk sentiment got boosted on optimism fuelled by the US-Mexico trade deal. Moreover, the renewed selling in the Chinese Yuan on the PBOC move also helped put a bid under the US dollar.
Despite the latest leg lower, the precious metal keeps the bullish momentum intact amid flattening of the US yield curve, which could cap the dollar recovery. Further, a dip in the US CB consumer morale could offer a fresh lift to the USD-sensitive gold.
Meanwhile, Stephen Innes, Asia-Pacific trading head at OANDA in Singapore, noted:
“We need a complete flip around momentum in the U.S. dollar for gold to push above $1,230 and move to $1,260. Unless the Fed takes the December rate hike off the table, gold does not have a chance to get near any of those supportive levels.”
This article about 28 August Gold Price Trading Outlook 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.