Gold Market Outlook 28 August 2024

Gold Market Outlook 28 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 lower in Asian trading on Wednesday, largely due to a rebound in the US dollar. As geopolitical tensions escalate, especially conflicts in the Middle East, demand for gold as a safe-haven asset has risen, which has helped limit the downside for gold. In addition, dovish comments from Federal Reserve Chairman Jerome Powell at the Jackson Hole Symposium last week also increased market expectations of an imminent Fed rate cut, thus supporting gold. The market is focused on speeches Wednesday by Federal Reserve Chairmen Christopher Waller and Rafael Bostic, whose comments could provide more clues on the central bank's interest rate policy. Meanwhile, investors are also awaiting the release later this week of preliminary U.S. second-quarter GDP and PCE price index data. A strong showing from these data could boost the greenback and limit the upside for dollar-denominated gold prices. However, dovish Fed policy expectations should continue to support gold prices to some extent.

From a technical point of view, gold prices have recently gained support from the 50-day simple Moving average (SMA), and oscillators on the daily chart also indicate that bullish momentum remains. Gold near the $…- $… resistance level has the potential to attract bargain hunters, and there is the potential to retest the all-time high of $…-… set in July. A break above that level could further challenge the psychological $… barrier and set the stage for a new rally. However, if gold fails to hold above the current support levels, especially the 50-day SMA support in the $…-… area, it could face more downward pressure in the near term. The next important support area is located near the 100-day SMA support at $…-…, and a break below this level could see gold continue to retreat to the $…-… area and open room for further declines.

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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