Gold Market Outlook 06 September 2024

Gold Market Outlook 06 September 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

The volatility of the gold market this week was mainly influenced by the US non-farm payrolls data (NFP). The data showed that 142,000 jobs were created in August, below market expectations of 160,000, and the July figure was also sharply revised down. This has heightened expectations that the Fed will cut interest rates at its September meeting, driving gold prices higher. Despite the overall weak non-farm payrolls data, the unemployment rate fell to 4.2% from 4.3% and average hourly earnings rose 0.4% month-on-month, higher than the expected 0.3%, which could put some limits on gold's upward momentum. In addition, geopolitical tensions, especially a potential ceasefire between Israel and Hamas and the latest developments in the war between Ukraine and Russia, have also provided safe-haven support for gold. The ongoing fighting in eastern Ukraine, in particular, has kept market sentiment on edge, prompting investors to continue seeking safe havens such as gold.

On the technical chart, gold has continued to rebound since hitting a low in the $… area, forming two consecutive daily chart "hammer line" patterns, indicating that market sentiment has turned bullish in the short term. The pattern usually signals a reversal, and subsequent gains confirm this bullish trend. If gold can break through the all-time high of $…, a key resistance band, the market could further test the upside target of $…. At present, gold remains in a long-term bullish channel, with the Relative Strength Index (RSI) on the daily chart in the region above neutral, showing the potential for further gains. In the medium term, as long as gold remains above the 100-day simple moving average (SMA), the trend will remain in favor of the bulls. If gold fails to hold current support, initial support will be in the $… to $… area, which provided effective support in mid-August. A break below this level could expose gold to more significant downside risk, with the target pointing to the 50-day moving average near $….



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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; ETO Group Pty Ltd., ABN 66 155 680 890, is a financial services company and regulated by Australia Securities & Investments Commission (ASIC), AFSL No. 420224.
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; ETO Group Pty Ltd., ABN 66 155 680 890, is a financial services company and regulated by Australia Securities & Investments Commission (ASIC), AFSL No. 420224.
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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