Gold buyers keep price above key hourly moving averages but price action is still trapped between $1,480 and $1,500
Buyers managed to regain near-term control upon a break of the key hourly moving averages close to $1,488-89 at the start of trading today. However, price action is still largely trapped between $1,480 and $1,500 since last week.
That goes to show that risk sentiment continues to stay indecisive and in search for a fresh catalyst for "the next big break".
The daily chart clearly shows the anticipation as gold continues to hold within a narrowing wedge awaiting a break on either side:
The key risk event in the sessions to come will be US vice president Mike Pence's speech on China tomorrow. Markets will be keenly anticipating that in hopes that it will provide an impetus for risk trades to move in a certain direction.
As such, gold is also caught up in all of that and traders are still waiting on something to tilt price action away from the current range.
As much as the fundamentals are dictating the pace of play right now, I reckon the next trade in gold will be to go with a break on either side of the wedge above if the move is firmly backed up by key headlines.
