Gold Fails to Break Above Key Resistance as Dollar Rebounds
The latest institutional trading desk flash report from August 28 indicates that spot gold is drifting lower after failing to hold above $4,620. This level marks a key resistance point for gold, which has been unable to break through the bearish cloud overhead.
Gold's price action is currently within a descending channel, with bullish momentum relatively weak according to trader Richard. In contrast, silver remains rangebound and lacks clear direction, with Richard noting that it is increasingly reverting to its industrial attributes rather than its monetary policy ties like gold.
On the other hand, crude oil prices have recovered their losses since August 25, returning to the $84 area. This rebound can be attributed to the fact that actual flows through the Strait of Hormuz have not yet been fully restored, providing support for oil prices after dips.
The US Dollar Index has also rebounded above 99, exerting pressure on non-dollar currencies like the British pound and euro. The dollar index is currently consolidating around this level, with Richard warning that a break below 98 could lead to a pullback in the dollar's value.