- GOLD pares all the previous day's gains and falls back to the familiar trading range.
- US Dollar Index bounces back above 92.20 on Fed's official's hawkish comments.
- Gold prices remain sensitive to sound economic data and market risk sentiment.
Gold is converging at the top of the vortex pinnacle. We could see a move after a breakout.
Gold prices extended the gains from the low of $1,750.77 made on June 29 and touched the high of $1,832.77 in the month of July. The August series started on a subdued note while swinging back and forth in the narrow trade range of $1,800 and $1,830.
The ascending trendline from the low of ascending trendline acts as a defensive for the bulls. A break of the bullish sloping line would intensify the selling pressure in the gold prices.
The Moving Average Convergence Divergence (MACD) remains neutral near the midline. A downtick in the MACD indicator would confirm the downside momentum. A sustained break below the $1,800 would make the journey toward the south for the prices.
