As talk turns back towards more US rate cuts, it has been Gold that has so far been the loser on the session overnight.

We’ve been watching the $1500 level closely and it appears for now the bears have taken over.

From a fundamental point-of-view, there doesn’t appear to be a clear direction and that meant that we have been trading in a bit of a range recently. But now that this key $1500 level has looks like a key inflection point.

Also looking at the chart it could be a double top of sorts around those highs, so the chart is looking very bearish at the moment.

GOLD did run up on the recent Yuan devaluation as the trade wars flared higher. But ultimately these recent moves are on the back of the belief on where interest rates and therefore the USD might end up.

We have some funny price action in a way at the moment. The USD has been rising in the last few sessions, which is bearish for Gold, but the expectaion for rate cuts seem high.

So I am really basing my assessments on the technicals, which hare looking bearish.

A really bearish sign from here would be a push higher and a fail at $1500. That would then tell me the sellers rule.

I would proceed with caution in the next few days though as we have the FOMC minutes and Powell speaking at Jackson Hole, so I expect some extreme volatility ahead if any new information comes out.