technical

The US Dollar (USD) is under strong selling pressure on Wednesday, resulting in Gold approaching the $4,500 mark for the first time in over two months.

Gold is looking back toward the $4,400 level early Wednesday, reversing a steep pullback seen on Tuesday. All eyes now remain on the Minutes of the US Federal Reserve (Fed) July policy meeting, due later on Wednesday, for fresh trading impetus.  

Base case: while above the 200-day SMA around 0.6940, spot should maintain the neutral-to-bullish stance. Of note is that the pair is approaching the overbought zone, which carries the potential to, eventually, trigger a “technical” correction.

Gold is retreating after hitting three-day highs just below $4,450 early Tuesday, and is flirting with $4,400 as of writing.

The Aussie Dollar extends its multi-week recovery, finally reclaiming the key 0.7100 hurdle and beyond against the US Dollar. Indeed, AUD/USD is gaining momentum and appears to be heading higher, with the 0.7200 barrier ahead of yearly peaks.

Gold price kicked off the week, maintaining upward pressure, trading not far below the $4,400 mark. The US Dollar (USD) remains vulnerable after United States (US) data released throughout August weighed down the odds for a Federal Reserve (Fed) interest rate hike in September.