Gold Daily Forecast: Eyes on $2,528 Resistance Amid Fed Rate Speculation

Gold prices remained robust in Asian trading on Thursday, staying close to record levels as the dollar’s rebound paused ahead of crucial inflation data.

Spot gold was trading just under $20 from its all-time high of $2,532.05 per ounce, a level reached last week. Despite struggling to break new records since, the yellow metal continues to be well-supported by growing market expectations that the Federal Reserve will cut interest rates in September—a move that typically benefits non-yielding assets like gold.

• Current Price Levels:
  Spot gold is currently trading around $2,512 per ounce, with recent highs at $2,532.05.
• Dollar Influence:
  A temporary pullback in the dollar, after it rebounded from 13-month lows, has also lent support to gold prices.

Safe-Haven Demand Bolsters Gold Amid Market Uncertainty

In addition to interest rate speculation, gold’s safe-haven appeal has been reinforced by recent geopolitical and economic uncertainties. Tensions in the Middle East continue with no signs of easing, and the suspension of oil production in Libya has added another layer of unpredictability to global markets. This uncertainty was further compounded by a notable drop in shares of NVIDIA Corporation (NASDAQ: NVDA), which led to broader losses in equity markets, fueling investor interest in gold.

#GOLD
Gold was almost as expected yesterday. Today, gold is still mainly fluctuating up and down.

SELL:2528 TP:2520 2510 2500 S/L:2535

BUY:2500 TP:2510 2520 2528 S/L:2492#FX #AUUSD #Trading pic.twitter.com/hBXS2Xl8TZ

— White (@White1694084) August 29, 2024

• Middle East Tensions:
  Ongoing geopolitical conflicts have driven demand for gold as a protective measure.
• Equity Market Impact:
  The recent decline in NVIDIA shares, a key player in the AI sector, has heightened fears of a broader market downturn, pushing investors towards gold.

Key Economic Data to Watch: Impact on Gold Prices

Looking ahead, investors are keenly focused on upcoming U.S. economic data, which could have significant implications for gold prices. A revised reading on Q2 Gross Domestic Product (GDP) is expected later today, providing insights into the economy’s performance. However, the more closely watched Personal Consumption Expenditures (PCE) Price Index, due on Friday, will be pivotal as it is the Federal Reserve’s preferred inflation gauge.

• GDP Data:
  The revised Q2 GDP is anticipated to confirm the U.S. economy’s strength, which could influence the Fed’s policy direction.
• PCE Price Index:
  Market participants are split on whether the Fed will opt for a 25 or 50 basis point rate cut in September, making the PCE data crucial for shaping expectations.

Gold Price Forecast – Technical Outlook

Gold is currently trading within an ascending triangle pattern on the 4-hour chart, a formation that typically suggests a continuation of the existing uptrend. This technical setup is characterized by a series of higher lows, indicating increasing buying pressure, with resistance forming near $2,528.

$Gold Price Forecast: $2,530 remains a tough nut to crack for #XAUUSD buyers

For more information, join: https://t.co/EX3dnjIOSk#xauusd #usgdp #nvidia #usdollar #NUFC #Bitcoin pic.twitter.com/HkmiBDHazc

— SignalX (@Finn_Patrick_) August 29, 2024

• Key Levels to Watch:
  If gold breaks above the $2,528 resistance level, it could trigger a significant bullish move, potentially pushing prices towards the next resistance levels at $2,551 and $2,575.
• Support and Momentum Indicators:
  The 50-day EMA, currently at $2,502, provides additional support, aligning with the lower boundary of the triangle. As long as gold remains above this trendline, the bullish scenario remains intact. The RSI, presently at 56.94, further supports this view, indicating that momentum is still slightly in favor of the bulls.

Conclusion: What Lies Ahead for Gold Prices

As the market navigates a complex landscape of economic data and geopolitical tensions, gold’s role as a safe-haven asset remains crucial. Investors should keep a close eye on upcoming economic reports and technical levels to better understand gold’s potential trajectory. With the possibility of Fed rate cuts on the horizon and continued global uncertainty, gold prices may see further gains, solidifying its position as a key asset in times of instability.