Today the market will get the latest from the US Federal Reserve. There is not expected to be any change in the main interest rate but at the Jackson Hole meeting (virtual) there were some policy changes. The Fed has now moved from a 2% inflation target to an average 2% target, this means they are willing to accept an overshoot. They are also targeting full employment and now traders and investors will be looking for more info surrounding these changes.
The technicals are looking positive at the moment with the market making higher highs and higher lows on the hourly chart. The very light pink lines are showing a converging wedge to the upside and the trendlines could provide some support or resistance. The main level in the chart is the red line at USD 1950.00 per troy ounce. The green line is the next resistance and this is at USD 1972.75 per once and beyond that the USD 2k psychological level is also close.
On the downside, there is a black trend line that could be retested after a recent break. The main low on the chart is the consolidation at the orange line at USD 1911.00 per ounce. On the higher timeframes, it has been tested a fair few times.
Remember that gold has been in an uptrend for some time. If the dollar weakens post FOMC it would be the perfect excuse for the yellow metal to rally again and for the trend to continue. If the greenback does strengthen then there could me more sideways pain to come.