FX.co ★ Analysis of Gold for August 04,.2020 - Watch for the breakout of the contraction pattern

Overall PEPP envelope is a core determinant of ECB's policy stance

• There is some rebound in economic activity
• But level of economic slack remains extraordinarily high
• The outlook remains highly uncertain
• Inflation outlook plays the central role in determining appropriate policy stance

Nothing that really stands out from Lane in the grand scheme of things. This just reaffirms that the ECB will stay committed to deliver on the full PEPP envelope - at the very least - by the middle of next year.

As I discussed in the previous review, the Gold is still in contraction and waiting for the breakout mode. The Bollinger bands started to contract and we got defined trading range between the $1,978 (resistance) and $1,970 (support)

Further Development

Analyzing the current trading chart, I found that there is potential for the range expansion to happen and the breakout.

Upside breakout of resistance woudl lead us to $1,987 and the downside breakotu of support at $1,970 may lead so ut $1,960

1-Day relative strength performance Finviz :

Based on the graph above I found that on the top of the list we got Nautral gas and Lumber and on the bottom of the list Lean Hogs and Crude Oil.