Overall view on XAUUSD or Gold - Update of August 12th's week
Fundamental: The main focus for gold traders remains the Chinese yuan mid-point fix because it seems to set in motion all the other events that have been driving the price action this week such as the direction of global bond yields and demand for risky assets.The People’s Bank of China fixed its midpoint for the yuan at 7.0136 against the dollar on Friday – the second time this week the benchmark was set weaker than 7. The fundamentals remain strong enough for investors to maintain a bullish long-term outlook.
Technical: After a tight consolidation gold and a false upward breakout, gold breaks the supply level and ceils to the highest point since 5 years with an increasing daily traded volume. Thus, another consolidation range was formed leading to a sideways market. The precious metal displays an upcoming volatility which will either bring it to 1600.000 or to the old supply level that became a demand zone.
Advise: Stay neutral or buy at the lower range level and sell at the upper range level while we don't break 1510.000 upside and 1490.000 downside.
Technical: After a tight consolidation gold and a false upward breakout, gold breaks the supply level and ceils to the highest point since 5 years with an increasing daily traded volume. Thus, another consolidation range was formed leading to a sideways market. The precious metal displays an upcoming volatility which will either bring it to 1600.000 or to the old supply level that became a demand zone.
Advise: Stay neutral or buy at the lower range level and sell at the upper range level while we don't break 1510.000 upside and 1490.000 downside.
