Gold is up on the back of the FOMC minutes which were released last night. The Fed is certainly worried about the Chinese markets and the massive sell off over in Asia have made them a little bit more cautious in their approach to raise the interest rate. Soon the rate hike expectations are slammed, we see a surge in the gold price, but the question is for how long? Because, the Fed will have to raise the interest rate eventually. This will make the bigger downward trend in gold to prevail and could push the price towards the 1050 mark.
The gold price is trading in a downward channel and it is also trading below its 50 day and 100 (shown in yellow and red respectively) moving averages. The 50 day moving average is the potential upward challenge for the price for the time being followed by the 100 day.