📊 Q3 Earnings are here! Plan ahead with key data on upcoming stock reports - all in 1 placeSee list

Gold: Key Technical levels to Watch Ahead of Fed's Decision

Published 2024/08/31, 17:12
XAU/USD
-
GC
-

Gold bulls are on edge despite rising hopes for a rate cut on September 18, 2024 - a date millions will be closely watching as the Fed announces its decision.

Analyzing recent movements in gold futures, it's clear that the market could open the week with a gap-down, and the current weakness may persist until the Fed's final decision.

Last Friday's steep decline in gold futures suggests that this downward trend could continue into this week.

Gold Futures 1 Hr. Chart

On the 1-hour chart, gold futures show a strong potential for further decline. A bearish crossover has formed, with the 9 DMA and 18 DMA both dipping below the 50 DMA, indicating continued pressure.

Gold Futures 4 Hr. Chart

In the 4-hour chart, gold futures failed to hold above the key resistance level at $2,561, resulting in a bearish hammer formation.

Gold Futures Daily Chart

The daily chart also shows a bearish candle formed last Friday, which still requires confirmation in the first trading session of the upcoming week.

Gold Futures Weekly Chart

On the weekly chart, the formation of a bearish hammer last week signals the likelihood of a selling spree in the weeks ahead.

However, gold bulls might make another attempt to test the immediate resistance at $2,561 before the downward trend resumes, as bears remain in control with bulls still in the overbought territory.

***

Disclaimer: This article is written for informational purposes only. It is not intended to encourage the purchase of assets in any way, nor does it constitute a solicitation, offer, recommendation or suggestion to invest. I would like to remind you that all assets are evaluated from multiple perspectives and are highly risky, so any investment decision and the associated risk is at the investor's own risk. We also do not provide any investment advisory services. We will never contact you to offer investment or advisory services.

Latest comments

Loading next article…
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.