Investing.com - Financial Markets Worldwide
🧐 ProPicks AI October update is out now! See which stocks made the listPick Stocks with AI

Gold price review after Fed chair updates

ByAntreas Exness Themistokleous
Published 27-08-2024, 07:36 pm
XAU/USD
-
GC
-

Gold prices remain near record highs due to expectations of a September interest rate cut in the US and a softer dollar, making gold more attractive for investors. Federal Reserve Chair Jerome Powell's dovish remarks have bolstered gold's appeal, with traders fully expecting a rate cut next month. Powell clearly hinted at the possibility of U.S. rate cuts, suggesting that the pace and magnitude of these cuts would depend on upcoming economic data, potentially increasing demand for gold investments. On Friday, Powell supported the idea of starting rate cuts soon, stating that further easing in the job market would be undesirable. Traders have fully anticipated a rate cut next month, with the CME FedWatch tool indicating a 64% probability of a 25 basis point reduction and a 36% chance of a 50 basis point cut.

From a technical point of view, the price continued testing the all-time high area of around $2,500 currently trading even beyond this point at the time of this report being written. The Stochastic oscillator is in the extreme overbought level for the past 10 sessions indicating that there might be a correction in the near short term while the 50-day moving average is still trading well above the 0100-day moving average validating the overall bullish momentum in the market. The Bollinger bands are still quite expanded showing that volatility is still high in the market so if a correction were to happen to the downside there is the liquidity to support it.

Latest comments

Loading next article…
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.