Ole Hansen, head of commodity strategy at Saxo Bank, discusses how gold is perhaps not yet ready to break higher after failing to benefit from additional dollar weakness.

He says that investors are not prepared to chase the precious metal’s price higher. Gold rallied during the past week as weak US economic data helped send the dollar and bond yields lower.

Hansen adds that tactical traders may enter new longs within the $1,334 and $1,328 area. He also discusses the potential impact of the FOMC meeting later this September.