Gold Market Outlook 08 July 2024

Gold Market Outlook 08 July 2024

Gold bars on a red background with a bar graph, representing the AI trading market and the gold trading news.

Article by: ETO Markets

Gold prices (XAU/USD) lost some momentum below $2,400 as the People's Bank of China suspended gold purchases for the second month in a row. China held 72.8 million Troy ounces of gold at the end of June, unchanged from the end of May, according to official data. The decision by China, the world's largest consumer of gold, has weighed on gold prices. Market expectations of a Fed rate cut in September could limit the downside for gold. Friday's U.S. Non-Farm Employment Change data was strong, with 206,000 new jobs created in June, above expectations of 190,000. However, the unemployment rate rose to 4.1%, while average hourly earnings growth slowed to 3.9%, in line with expectations. The data reinforced market expectations of a rate cut by the Federal Reserve. In addition, the results of the French parliamentary election indicate that parliament may be in limbo, increasing political uncertainty and thus supporting safe-haven demand for gold. Investors will also be watching Federal Reserve Chairman Jerome Powell's testimony on Tuesday for more clues on future monetary policy. 

Technical analysis shows that the relative Strength index (RSI) remains above the mid-50 line, indicating that the market remains bullish and remains above the upper Bollinger band track. If gold buyers regain momentum, the first upside resistance for gold is at $…, followed by $… and an all-time high of $…. In the event of a pullback, initial support is in the $… area near the 50-day Simple Moving average (SMA). A break below this support level could lead to a further fall to the lower Bollinger band of $….

Want completely chart technical analysis
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and trade recommendations on XAUUSD?

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and trade recommendations on XAUUSD?

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The information provided on this website is general in nature only and does not constitute personal financial advice. Please note that investing in CFDs and Margin FX Contracts carries significant risks and is not suitable for all investors. You don’t own, or have, any interest in the underlying assets. Any information or general financial product advice given is generic in nature and does not take into account your financial situation, needs or personal objectives. Past performance is not a reliable indicator of future performance. Investing in leveraged products carries significant risks. We recommend that you seek independent advice and ensure that you fully understand the risks involved before trading. It is important that you read and consider our disclosure documents
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Disclaimer

ETO Markets Limited is registered in Seychelles with Company Number 850672-1 and authorised by the Financial Services Authority (FSA), Licence Number SD062; ETO Markets LLC is registered in Saint Vincent and the Grenadines with Company Number 3286LLC2023.


The information provided on this website is general in nature only and does not constitute personal financial advice. Please note that investing in CFDs and Margin FX Contracts carries significant risks and is not suitable for all investors. You don’t own, or have, any interest in the underlying assets. Any information or general financial product advice given is generic in nature and does not take into account your financial situation, needs or personal objectives. Past performance is not a reliable indicator of future performance. Investing in leveraged products carries significant risks. We recommend that you seek independent advice and ensure that you fully understand the risks involved before trading. It is important that you read and consider our disclosure documents
(Privacy Policy & Risk Disclosure) before you acquire any product.

2024 ETO Markets | All rights reserved

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Disclaimer

ETO Markets Limited is registered in Seychelles with Company Number 850672-1 and authorised by the Financial Services Authority (FSA), Licence Number SD062; ETO Markets LLC is registered in Saint Vincent and the Grenadines with Company Number 3286LLC2023.


The information provided on this website is general in nature only and does not constitute personal financial advice. Please note that investing in CFDs and Margin FX Contracts carries significant risks and is not suitable for all investors. You don’t own, or have, any interest in the underlying assets. Any information or general financial product advice given is generic in nature and does not take into account your financial situation, needs or personal objectives. Past performance is not a reliable indicator of future performance. Investing in leveraged products carries significant risks. We recommend that you seek independent advice and ensure that you fully understand the risks involved before trading. It is important that you read and consider our disclosure documents
(Privacy Policy & Risk Disclosure) before you acquire any product.

2024 ETO Markets | All rights reserved

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