Gold is looking very weak, USD up and hints of an interest rate rise which will definitely cap any gains.
Technically gold's on the ropes and is likely to test $1200.
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UBS analysts said in a note today: “July, August and September are typically gold's strongest performing months. But gold dropped 2.74% in July, and while it's currently up 1.05% in August, its grasp on those price gains looks very tentative arring a move to $1200, physical demand from China is likely to remain quite subdued in the months ahead. This means that gold is lacking physical support from its biggest physical market, implying that the seasonality trade for September - gold's best performing month historically - is unlikely to follow its long-term trend.”
