Gold Technical Analysis – Struggling to break a key resistance ...Middle East

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Gold Technical Analysis – Struggling to break a key resistance
Fundamental OverviewGold has been on a steady rise recently due to a geopolitical driver coming from the Middle East and a fall in real yields. Yesterday, we saw a drop after a benign US CPI report which might have been due just to technicals as we were at a key resistance level or a repricing in interest rates expectations. In fact, the probabilities for a 50 bps cut in September continue to recede and if we keep on getting pretty stable economic data, then the market will likely need to pare back the aggressive rate cuts expectations putting a lid on gold’s gains. In the big picture, gold should remain supported as we head into the Fed’s easing cycle, but in the short-term the repricing in

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