Gold was modestly firmer in early trade this morning, following yesterday’s muted session. Gold is now closer to the top of its recent trading range than the bottom, and it looks relatively comfortable around $4,150. For most of this month, support has held at $4,000 while the upside has been capped at around $4,200.
Source: TN Trader
Prices have held up as the probability of another 25-basis point rate cut from the Federal Reserve next month has increased sharply since Friday. This was when the head of the New York Fed, John Williams, delivered a dovish speech, which effectively drowned out earlier hawkish statements from many of his colleagues.
It is widely believed that his message would have been agreed by Fed Chair Jerome Powell, and this prepared the way for more dovish comments from Fed members Christopher Waller and Mary Daly earlier this week.
Overall, gold continues to consolidate within its $200 range, and this is helping the daily MACD reset at lower levels. Many traders will be watching the US dollar now, particularly as it appears to have failed to break out to the upside. Any further weakness in the greenback should help both gold and silver.
