Gold / Long SetupThe price action suggests that gold traders are a little more locked on the U.S. Dollar this week. After a promising start, the greenback has drifted mostly sideways to lower, and is in a position to post a slightly lower close for the day .
Meanwhile, gold has mirrored the move in the dollar. With the dollar’s early spike to the upside, gold plunged, but when the greenback started to flatten out, gold traded higher to flat.
The price action also suggests that short-term gold traders may be a little confused about how to play the stalemate in Washington. Many were betting on another round of fiscal stimulus by now from Washington, but with Congress taking a break until the U.S. Labor Day holiday, it looks as if there may not be a federal government aid package until at least the first week in September.
Meanwhile, the longer-term bullish outlook remains intact. Massive money-printing by central banks, an ultra-low interest rate environment and worries over the economic fallout from mounting coronavirus cases, this all is in Favor of Gold.
Additionally, the Fed’s recent gloomy assessment for the economy is very supportive for gold. Recently, policymakers warned U.S. growth would be muted until the coronavirus was contained.
Anyway i got 2 zones were i am willing to Buy .
Good Luck .
