Gold intermarket: bid, correlated to VIX and DXY, watch FOMC minutes

Gold remains above the ascending support line formed on the 12th August and within the longer term uptrend from $1,045.00.

Gold has caught a bid on markets that have out-priced a Fed hike and one that is beginning to factor in inflation in the US economy with lower rates for longer. The DXY as a result has taken a hit and is directly correlated to the rally in the yellow metal from middle of July's business.

The price of Gold took off from $1,310 while the DXY dropped from 97.45 before hitting lows of of 94.75 with Gold reaching as a high as $1,375. Today we will have the Fed minutes as the next major catalyst that could see a more volatile VIX that is currently at 13.70 and in an uptrend, underpinning gold. $1,380 is the upside target while major support is located at $1,120.