Gold Market Outlook 19 August 2024

Gold Market Outlook 19 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 held above $2,500, but the market showed some caution. The main factors driving up gold prices include increased expectations of a rate cut by the Federal Reserve and rising geopolitical tensions in the Middle East. Investors' expectations that the Federal Reserve will cut interest rates by 25 basis points in September are largely settled, further driving funds to non-yielding gold. At the same time, the escalation of the situation in the Middle East and the continuation of the war between Russia and Ukraine have intensified risk aversion, further supporting the higher price of gold. However, the optimism of global stock markets and the easing of recession fears in the United States have had some restraining effect on gold's rally. Despite the recent downward trend in US inflation data, improved consumption data and consumer confidence suggest the US economy remains on solid footing, which could slow the pace of more aggressive policy easing by the Federal Reserve. As a result, the market's focus turned to the upcoming release of the Fed's meeting minutes and Jerome Powell's speech at the Jackson Hole Symposium for clues on future monetary policy.

From a technical point of view, gold's break above the psychological level of $… indicates that bulls still dominate the market. Volatility indicators remain in positive territory, indicating further upside potential for gold prices in the short term. However, if a sustained break above the $…- $… peak is not achieved, bulls may need to tread carefully to prevent a pullback. On the downside, the $…- $… area is now a key support level where a pullback in the near term could be supported by buying. If gold breaks below this level, the $…-… area could provide further support. If the downward pressure intensifies, gold has the potential to test the $…-… region where the 50-day simple moving average (SMA) is located, which will become an important threshold for both bulls and bears to fight over.



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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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