• Gold stabilizes at all-time highs after its steep rise at the end of last week. 
• The overall trend remains bullish, and much depends on the outcome of the Fed meeting on Wednesday.  
• Gold is in the overbought zone, according to the RSI, but in a firm uptrend on all timeframes. 

Gold (XAU/USD) is exchanging hands in the $2,580s on Monday, just below the all-time-high (ATH) of $2,589 hit earlier in the day. It has plateaued after rallying strongly on Thursday and Friday but the overall trend remains bullish. 

The initial catalyst for the rally to ATHs was a mixed US “factory gate” price inflation data, or Producer Price Index (PPI) data for August, which revealed unexpected softness in the headline figure. 

This was followed by two articles in The Wall Street Journal (WSJ) and the Financial Times (FT) that revived the case for the Fed making a relatively large 0.50% cut to its fed funds rate at its meeting on Wednesday.