Gold Market Outlook 26 August 2024

Gold Market Outlook 26 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 (XAU/USD) fell slightly in Asian trading on Monday, but downside may be limited due to rising expectations of a Fed rate cut. The Fed is widely expected to kick off a rate-cutting cycle at its September meeting, which would normally be positive for gold as lower rates reduce the opportunity cost of holding non-interest-bearing assets. In addition, the continued escalation of geopolitical tensions, especially the conflict between Hezbollah and Israel, has increased market uncertainty, thus driving demand for safe-haven assets such as gold. However, weak economic demand from China, which is the world's largest producer and consumer of gold, could undermine gold's upside potential. Meanwhile, the market will also be closely watching the upcoming release of the US durable goods orders for July, the preliminary second quarter GDP and personal consumption expenditure (PCE) data. These economic data will provide more guidance on the Fed's future policy path and could have a further impact on gold prices.

From a technical point ot view, gold prices remain within the long-term uptrend channel, indicating that the overall trend remains in favor of the bulls. Gold prices remained above the 100-day exponential Moving average (EMA), showing strong support. In addition, the 14-day Relative Strength Index (RSI) stands at 62.70, indicating that market momentum is tilted towards the bullish side. In the near term, if gold can continue to hold at current levels and rise further, it could test the all-time high of $…-… and the upper boundary of the trend channel. Once that level is broken, gold is poised to challenge the psychological $… barrier. On the other hand, initial support is at $…. If gold breaks below this support, further selling pressure could drag it down to the $… level and possibly even down to the lower end of the trend channel area of $…- $…, which coincides with the 100-day EMA.

Want completely chart technical analysis
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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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