Article by: ETO Markets

Despite the US Dollar sell-off, gold price failed to benefit, as the US Treasury bond yields rebounded firmly from multi-month lows, diminishing the appeal of the non-interest-bearing gold price. Markets resort to repositioning in the US government bonds and the US Dollar, as they seek to lock in profits heading toward next week’s Federal Reserve interest rate decision.

Following Monday's erratic trading, the price of gold has been making higher lows, as seen on the daily chart, indicating that there may be more room for further gains. The Relative Strength Index rises over the midline, supporting the gold price's positive outlook. To spur further gains toward the $… barrier, gold buyers must find acceptance above the $… zone.

However, a challenge of the $… mark will be crucial for traders who are bullish. The round number of $… represents the next downside cushion.