Gold (XAUUSD) retraces after reaching an all-time high of 2,532 USD, but the uptrend may resume

Although XAUUSD’s price dropped below 2,500 USD as part of a correction on Thursday, the prospects for further growth remain. Find out more in our XAUUSD analysis for today, 23 August 2024.

XAUUSD forecast: key trading points

• Market focus: market participants await today’s speech by Federal Reserve Chair Jerome Powell at the Jackson Hole Symposium
• Current trend: gold is trading in a strong uptrend, with growth likely after the correction
• XAUUSD forecast for 23 August 2024: 2532 and 2450

Fundamental analysis

XAUUSD quotes retraced, dropping below 2,500 USD during Thursday’s trading. The recent strong growth in gold prices was largely driven by increased expectations of a Federal Reserve interest rate cut this year, which is positive news for XAUUSD. The current correction may be due to profit-taking by some investors.

Federal Reserve Chair Jerome Powell will deliver a speech at the Jackson Hole Symposium today. The Fed’s decisive stance on future interest rate reductions will provide gold with additional upward momentum. Conversely, if his speech raises doubts about future cuts, this may strengthen the US dollar and prompt further correction in the XAUUSD price.

XAUUSD technical analysis

The H4 chart shows a slight downward correction in XAUUSD quotes as part of an uptrend. A triangle pattern has formed, with the price retreating to its upper boundary. If the price holds above this level, XAUUSD could continue to rise, with an approximate target of 2,600 USD per troy ounce.

The short-term XAUUSD price forecast suggests that if bulls hold the price above the 2,483-2,477 USD support area, growth may continue, with the price likely reaching the 2,600 USD level in the near term. However, if the price falls below this support, it will invalidate the growth scenario and could continue the downward correction.

Summary

XAUUSD is undergoing a moderate correction, falling below the 2,500 USD level. Market participants await Federal Reserve Chair Jerome Powell’s speech at the Jackson Hole Symposium today.