The gold price is heading for a 2nd day of gains as the market awaits US president Donald Trump’s choice for the next candidate to run the US Federal Reserve.
Although the market is pretty certain on who Trump will pick, the expected behavior of Mr Powel remains uncertain and especially with regards to interest rate hikes and this has benefited gold
"A lot of the focus is on the Fed chair, and Trump's expected nomination of Jerome Powell," said OCBC analyst Barnabas Gan.
"The current movement in prices is not really about him Powell being hawkish or dovish, but more so about market uncertainty about what his nomination would mean."
From a technical point of view, the formation of a double bottom still looks in tact but it may take some time for gold to break out of its current tight trading range so we made need a strong break above the top resistance line around $1,280 before taking any long positions