Gold Price Soars on Tumbling September Hike Odds
The gold price has seen an increase as September hike odds tumble to their lowest level since the payrolls report. The rate-relief trade remains intact, and the dollar is confirming what the bond market had been saying about a potential interest rate cut. This development is driving the gold price up, despite rising yields.
The 200-day moving average will soon become a challenge for traders, with some viewing it as resistance and others seeing it as a trigger point for further gains. If the gold price can maintain its current level, it may accelerate to the upside.
However, there is still risk of a break below $4,311.04, which could lead to a decline into a key 50% to 61.8% zone at $4,195.96 to $4,136.05. Inside this zone lies the 50-day moving average at $4,146.45.