Gold Market Outlook 21 August 2024

Gold Market Outlook 21 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 continued to hold above the psychological $2,500 level and hit record highs on expectations of a Fed rate cut and geopolitical tensions. The market is widely expected that the Federal Reserve will start a rate cut cycle in September, which has become the main factor driving up the price of non-yielding gold. In addition, economic issues in China and geopolitical risks in the Middle East are providing additional support to haven demand. However, with the release of the minutes of the Fed's July FOMC meeting and Fed Chairman Jerome Powell's speech at the Jackson Hole Symposium this week approaching, traders chose to remain cautious for the time being and await more policy cues. Still, gold's bullish potential remains. The possibility of a Fed rate cut, volatility in global financial markets, and geopolitical factors have all provided solid support for gold. In particular, the People's Bank of China issued new gold import quotas for Chinese banks last week, indicating expectations of a recovery in demand for gold. In addition, positions in SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, have reached their highest level in seven months, indicating improved demand for financial investments.

From a technical point of view, gold, after breaking through the key resistance at $…, moved further above the $… mark, triggering new bullish momentum. Technical indicators indicate that gold prices are poised to continue to move higher, with the volatility indicator on the daily chart remaining in positive territory and far from being overbought. This suggests that the downside for gold is limited, with key support remaining at around $…. In the event of a pullback, expect fresh buying around $… and limit the downside to the $… area. In the event of further selling pressure, gold could fall to the horizontal support level of $…-..., and could even dip to near $…. If gold continues to fall below $…, the 50-day simple Moving average (SMA) near $… will be a key support level.



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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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