Gold Market Outlook 16 August 2024

Gold Market Outlook 16 August 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)  were pressured by rising risk appetite, although geopolitical risks and expectations of a Fed rate cut provided some support. As fears of a recession in the United States eased and sentiment turned positive, global stock markets rose broadly and demand for safe-haven assets such as gold fell. However, the ongoing conflict in the Middle East and expectations that the Federal Reserve could start cutting interest rates in September have helped limit further declines in gold prices. The latest US economic data showed retail sales rose more than expected in July and the Labour market held up, further easing fears of a sharp economic slowdown. The series of data has led to a reduction in bets on a big Fed rate cut, with expectations leaning more towards a quarter-point cut at the September meeting. In addition, a recovery in US Treasury yields and a stronger dollar have weighed on gold prices. However, as geopolitical risks have not been completely eliminated, gold can still maintain its safe-haven demand to some extent.

From a technical point of view, the gold price trend is still in favor of the bulls. While gold has not been able to effectively break through the $… resistance level, technical indicators show that it remains in positive territory, indicating that the market still has upside potential. If follow-on buying is strong, gold could retest and break out of July's all-time high of $…-… and further break through the psychological $… level, confirming a month-long break from the wider trading range and setting the stage for further gains. On the other hand, if gold continues to retreat, the lower support is in the $…-… area, with further support around $… and the weekly low of $…. A break below the $… mark could further test the 50-day SMA support (around $…). If this support level is broken, gold could continue to retreat to the 100-day SMA (around $…) and late July lows (around $…).

Want completely chart technical analysis
and trade recommendations on XAUUSD?

Want completely chart technical analysis
and trade recommendations on XAUUSD?

Want completely chart technical analysis
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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