Gold is up 1% on the day, recovering some ground after Friday's drop
I haven't been a big fan of gold over the past few months (hence, the lack of posts on it) as price action also continues to sit more choppy but seemingly keeping in a rather well defined range for the time being.
Any major downside is more limited closer to support around $1,676 while recent upside momentum is capped by the key daily moving averages and short-term trendline resistance from the 1 June to 3 September highs.
The confluence of the former is sitting close to $1,795 on the day with the latter also seen thereabouts, so I would argue that said region and the $1,800 level are key resistance points to watch for the time being in gauging any further upside momentum.
Beyond that, there is the July and Sept highs @ $1,834 to contend with before getting to the trendline resistance from the 7 August 2020 and 1 June 2021 highs near $1,840.
Those are the key technical points to take note of for gold at the moment.
Looking over to the fundamental side of things, I'm still not a big fan as yields and dollar sentiment could very well put a lid on any significant upside. Fed expectations are also key so there's that to keep in mind when weighing the gold outlook.
But considering that the market has fully priced in a hike for September 2022, things don't look that bad for gold in all honesty.
That said, buyers may have to wait on the seasonal tailwind from around December to January for any potential trend higher in my view. Otherwise, considering the fundamental backdrop and key techncial levels above, any major upside for gold is rather limited.
