Gold Price Analysis: There has been a decent intraday break to the upside but the bulls are not in full control yet

• Gold is trading 0.60% higher and the dollar index is 0.20% down on the day. 
• The key resistance still remains intact at USD 1992.48 per troy ounce.

Gold 4-hour chart

As the dollar weakens slightly gold bugs are taking advantage to push the price of the yellow metal higher. The general risk sentiment in the stock markets today has been mixed but after a soft start to the EU session, US traders have managed to improve the mood. Only just recently (5.30 pm BST) have the price of stock indices moved lower but gold remains steady. 

Looking at the chart, the price has broken a trendline to the upside. This is not the strongest trendline as it only had two touches but if the price can close above the area it may be a good sign for the bulls. The key level on the chart is the orange line at the previous wave high of USD 1992.48. If the bulls manage to break the level then the previous all-time high might be the target.

The indicators are getting lightly ahead of themselves. The Relative Strength Index is nearly at the overbought zone. The MACD histogram is green and the signal lines look like they are crossing over to the upside too. This has happened as there has been a period of sideways action and the indicators work on averages and tend to overreact.

This is still an uptrend on the higher timeframes and it looks like the trend could continue. We still need further confirmation and the price needs to take out the two previous wave highs for a start. It would not be a suprise if the price was to stall again until the FOMC meeting on 16th September. 

Additional levels