Gold as mentioned remains stuck in a relatively tight range around $1,200/oz. and would need a weaker dollar and potentially also weaker stocks before challenging those holding a negative price view. The FOMC meeting on September 26 is widely expected to yield another rate hike and should have a limited impact on gold. More importantly, and more challenging, is a renewed rally in 10-year US real yields which have climbed to 0.9%, a near four-month high.
A break above $1,214/oz and probably also $1,220/oz is needed before potentially seeing short-covering carrying it higher. Until such time we maintain a neutral view on gold with silver and platinum potentially providing a better opportunity given the aforementioned relative and absolute cheapness.