Gold continues to move sideways as traders weigh in on US Economic conditions

9/7/14 (12.20pm). Gold markets remain confused at the moment as to which direction it wants to go and continue to trade sideways as investors await clear signs from the U.S. Federal Reserve that it is on path to raise interest rates next year.

Gold gained another $8.00 this morning trading at $1324.50 before the release of FOMC minutes due this afternoon in the US session. Prices are pausing above the $1311 support level which is also the 23.6% Fibonacci retracement point. The fact that buyers keep moving in each time the price falls below $1320 suggests that we may essentially see additional gains in gold. Near-term resistance is at $1333, the July 1 high, thus the first target remains $1330 and then $1333, but the price needs to break out from this $20 or so range before a clear move can be said to have been established. Moreover the move of the 50 DMA above the 200 DMA is strengthening the case that the bull market is gathering momentum.

Basically if we can get over the $1330 resistance level, we feel that this market will continue to push all the way up to the $1400 level. Pullbacks at this point time should continue to attract buyers and consequently we believe that this is fundamentally a buy only market at the moment.