Focus on GOLD today – 28th Aug, 2024 

In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of the GOLD for Aug 28, 2024. 

Key Takeaways 

• Geopolitical support for gold prices: Due to the uncertainty of the Iran-Israel conflict and the weakening of the US dollar index, spot gold once again challenged previous resistance level of 2525. Iran said it was “ready and could” attack Israel at any time. But the United States said it would defend Israel if Iran launched an attack. 

• Interest rate cut is the key: The minutes of the Federal Reserve’s discount rate meeting showed that the board members responsible for overseeing the Chicago and New York Fed voted in July to cut the discount rate by 25 basis points. In last month’s vote, 10 of the 12 regional Feds wanted to keep the discount rate at 5.5%, while the Chicago and New York Feds wanted to cut it to 5.25%. 

Technical Analysis 

Daily Chart Insights 

(XAUUSD Daily Price Chart, Sources from Ultima Markets MT4) 

• Stochastic oscillator: The indicator did not form a bearish signal last week, and the indicator is about to enter the overbought area, suggesting that gold short-term bulls still have the upper hand. However, the indicator and the exchange rate are about to form a top divergence pattern, and investors need to be vigilant. 

• Price Action: After the gold price fell back to the previous high long-short conversion line, a bullish engulfing price action appeared. The gold price still has the probability of continuing to rise, looking at the Fibonacci proportional extension level near 2543.42. 

1-hour Chart Analysis 

(XAUUSD H1 Price Chart, Sources from Ultima Markets MT4) 

• Stochastic oscillator: The indicator sends a short signal in the overbought area, suggesting that the bulls are at a disadvantage in the short term. There is a certain probability that the gold price will show a downward trend during the Asian session. However, based on the bullish signal on the daily chart, the current decline is temporarily regarded as an adjustment to the previous upward trend. After waiting for another bullish signal, you can pay attention to whether there is a long opportunity. 

• Fibonacci retracement position: After the gold price was blocked at the previous high of 2526.33, it was in the stage of falling retracement during the Asian session. Pay attention to the price action of gold prices when they retreat to Fibonacci 61.8% and 78.6%. At that time, the gold price is expected to create a new high. 

Pivot Indicator 

(XAUUSD 30 Minutes Price chart, Sources from Ultima Markets APP) 

• According to the trading central in Ultima Markets APP, the central price of the day is established at 2521, 

• Bullish Scenario: Bullish sentiment prevails above 2521, first target 2532, second target 2546; 

• Bearish Outlook: In a bearish scenario below 2521, first target 2495, second target 2487. 

Conclusion 

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