#Gold Technical Analysis# 24K99 News On Wednesday (August 28th), in the early European session, spot gold maintained a deep intraday correction trend. Currently, the price of gold is at $2508 per ounce, a sharp drop of nearly $17. Earlier, the gold price once fell to $2503.03 per ounce. Dhwani Mehta, a senior analyst at FXStreet, wrote an article on Wednesday analyzing the technical trend of gold.
(Spot gold 30-minute chart, source: 24K99)
Mehta wrote that in the early session on Wednesday, as the US dollar attempted to rebound, the price of gold returned to a declining trend, but it still remained above $2500 per ounce. The gold price followed the negative trend in the Asian session on Tuesday and is currently waiting for speeches from Federal Reserve policymakers to find new hints about interest rate prospects.
The "Fed Watch Tool" from CME Group showed on Wednesday that the market currently expects a 32% likelihood of a 50 basis point rate cut in September, while the likelihood of a 25 basis point rate cut is 68%.
Mehta pointed out that from a short-term technical perspective, there is no change in the price of gold. As long as buyers hold onto the triangle resistance-turned-support level at $2466 per ounce, the upside risk for the price of gold remains intact. The 21-day simple moving average (SMA) is close to this level, making it a strong support.
Meanwhile, the 14-day relative strength index (RSI) has turned lower, but remains stable above 50, currently approaching 61, indicating a reasonable bullish outlook for the price of gold.
On the downside, Mehta stated that the first support zone for the price of gold is expected to be around $2500 per ounce. Once this level is broken, the low point from last Friday at $2485 per ounce will be challenged. If it continues to break below the latter, the price of gold may further decline to the support level of $2466 per ounce.
(Spot gold daily chart source: FXStreet)
In terms of upward direction, Mehta added that gold buyers need to break through the record high of $2532 per ounce to rise to the next key resistance of $2550 per ounce.
If the gold price surpasses the above-mentioned resistance, it may challenge $2600 per ounce and eventually aim for the triangle target of $2660 per ounce.
At 15:24 Hong Kong time, spot gold was reported at $2507.90 per ounce.