- Gold has traded down to its lowest level of the month
- Risk-on flows weighing on the market ahead of the Fed
- Price now approaching a retest of the major breakout seen in August around 1295
This morning, Gold prices have extended the declines seen last week with the precious metal falling down to its lowest level of the month around $1310. For the second week in a row the market has gapped lower with a rising appetite for risk assets as seen by the move up in stock markets this morning, leading to investors exiting Gold positions.
The start of the week has seen another gap lower in the Gold price. Source: xStation
The market remains in a longer term uptrend however, with the breakout zone around 1295 now a potentially key level to watch if price falls back for a retest. The market made a major breakout above here at the end of August and as long as price remains above 1295 then this remains valid.
The breakout in Gold at the end of last month remains valid as long as price is above the 1295 level. Source xStation
Alternatively a drop below 1295 would alter the outlook and threaten the rally seen for much of 2017, with the market enjoying a clear upwards trajectory since making a low around 1210 back in early February.
The big event for this market this week is the Fed rate decision on Wednesday evening at 7pm. We will post an in-depth preview of the event tomorrow which will look at what could occur and what impact this may have on the Gold market.