FX.co ★ XAU/USD, GOLD

As I predicted, Gold has completed a three-day correction cycle with a full buyback of the sell-off from July 8. Right now there is a battle for the resistance at 4150. In case of a pullback, the 4080 level will provide support. I expect Gold to finish today with a breakout of 4200. The uptrend in gold is supported by the absence of news in the economic calendar. In addition, the dollar is weakening due to obvious problems in the labor market, which prevent the US from pursuing a hawkish policy. The Middle East crisis has not escalated into a full-scale confrontation. Negotiators are already working on de-escalation between the US and Iran. As UBS bank analysts note, current prices are attracting long-term investors seeking protection from long-term fiscal risks in the US. Gold consolidating above $4100 confirms that retail capitulation is over.