- Gold Prices Surge Past $2500/oz Despite Reduced Chance of Fed Rate Cut
- Gold prices hit new highs fueled by dovish Fed comments and Middle East tensions
- Technical analysis suggests a bullish trend, with a possible retracement to $2450
Gold prices are on the rise, surpassing the $2500/oz mark despite a decreased likelihood of a 50 bps rate cut at the upcoming Federal Reserve meeting. This unexpected surge comes in the wake of dovish statements from Fed policymakers and escalating tensions in the Middle East.
Market participants were taken by surprise as gold broke through the $2500 barrier, defying expectations following the reduced chance of a rate cut. The recent rally can be attributed to the cautious tone set by Chicago Fed President Austin Goolsbee and concerns over potential conflicts in the Middle East.
Looking ahead, technical analysis indicates a strong bullish trend for gold, but a retracement towards $2450 could be in the cards. Despite the potential pullback, the overall outlook remains positive for gold investors.
GOLD (XAU/USD) Weekly Chart, August 19, 2024
Gold formed a morning star candlestick pattern after Friday’s close, signaling a possible uptrend continuation. However, profit-taking could limit further gains, leading to a pullback towards the $2472-2480 range in the short term.
GOLD (XAU/USD) Daily Chart, August 19, 2024
Support:
Resistance:
Original Post: Market Pulse