Gold intermarket: DXY keeps driving the price

Gold has settled into a consolidation of the recent run to the upside while the DXY also consolidates with a bearish bias while investors await  the FOMC later in the month.

The Fed was forecasted by around 20% of the market and observers to be hiking rates this month, but a series of poorer data of late has blurred such views and for that reason alone, the market is getting short of the greenback, adding to the case for a bearish dollar longer term for the rest of the year with longs being closed according to the recent CFTC report since the Jackson Hole. 

Gold has made a high of $1,352 today and was capped there to consolidate down to $1,342 on the daily sticks while DXY rests around the 95 handle after a weaker performance again across the board. Gold is looking bullish on both fundamentals and technically, attracting bids on pullbacks and recently breaking above the cluster of daily sma's with $1,357 as next key resistance ahead of $1,375 recent highs. $1,235 on the wide stands as a key support with the 100 dma located here, supporting the price on sell-offs since June business.