On Wednesday (August 28), spot gold maintained a deep intraday correction trend, and the current gold price is at $2498 / ounce, down nearly $30 during the day, and the gold price fell to $2493.73 / ounce earlier.
Analysis of the technical trend of gold prices.
Gold prices returned to losses in early trading on Wednesday as the dollar tried to rebound, replicating the negative moves seen during Tuesday’s Asian session and now awaiting a speech from Fed policymakers looking for fresh hints on the outlook for interest rates.
The CME Group’s Fed Watch tool showed on Wednesday that markets are now pricing in a 32% chance of a 50 basis point rate cut in September, compared with a 68% chance of a 25 basis point rate cut.
From a short-term technical point of view, there is no change in gold prices, and as long as buyers hold the triangle resistance-turned-support level of $2,466/oz, the upside risk to gold remains intact.
The 21-day simple moving average (SMA) is close to this level, making it a strong support.
At the same time, the 14-day Relative Strength Index (RSI) turned lower, but held firmly above 50 and is now close to 61, justifying the bullish outlook for gold.
On the downside, gold’s first support zone is expected at $2,500 an ounce, and a break below this level will challenge Friday’s low of $2,485.
If it continues to break below the latter, gold could fall further towards the $2,466 support.
On the upside, gold buyers need to overcome the record high of $2,532 to rise to the next key resistance at $2,550.
If gold breaks through the above resistance, it could challenge $2,600 an ounce and eventually target the triangle target of $2,660.
At 20:24 Hong Kong time, spot gold was at $2498.50 an ounce.
Author: Zhou Tong (Analyst) 28-08-2024
#The above is only the author’s personal opinion and has nothing to do with the company’s position.
#The strategy recommendations are for reference only, entering the market is risky, and investment needs to be cautious.
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