Gold prices are softening as the dollar firms up after reports that the BOJ is leaning towards leaving yield curve control strategy unchanged.
The dollar is riding a small wave here and that is putting gold’s third weekly gain at risk. Gold traders have a lot of news to follow next week and that could support a deeper pullback if the Fed keeps optionality for more tightening on the table and if earnings continue to mostly suggest the resilience of the US economy remains.
Before the central bank fireworks ignite next week, gold seems like it will consolidate between the $1940 and $1980 range.