Gold Bulls Retain Market Control Despite Recent Pullback - Forex.com Analyst Razaqzada

U.S. debt concerns have fueled a dollar debasement trade, pushing gold above critical resistance levels. After a 15% August rally the market looks overbought, according to Fawad Razaqzada of FOREX.com.

Treasury purchases of long-dated bonds are stabilizing yields and causing some give-back in the trade. “We have seen a bit of give-back in that trade, with investors welcoming, although not-so-warmly, the US Treasury’s decision to up its long-dated bond buying to effectively lower rates and suggestions that there is more in their tool kit to hammer down yields,” Razaqzada said. He views any dips as buying opportunities absent a meaningful yield decline.

Gold trades near 4601.60 dollars an ounce facing resistance at 4655–4700, with supports at 4515 and 4400. Bulls remain in control after breaking moving averages, though sellers now carry the burden of proof.