Gold (XAUUSD) holds above 2,500 USD but may enter a correction

The XAUUSD price has been trading above 2,500 USD since the beginning of the week but has yet to hit a new all-time high of 2,532 USD. Tomorrow, the market will focus on US GDP data. Find out more in our XAUUSD analysis for today, 28 August 2024.

XAUUSD forecast: key trading points

• Market focus: market participants await Q2 US GDP data, due on Thursday
• Current trend: although gold is trading within an uptrend, there are risks of a downward correction
• XAUUSD forecast for 28 August 2024: 2,532 and 2,483

Fundamental analysis

XAUUSD quotes have traded above 2,500 USD this week, supported by expectations of a September Federal Reserve interest rate cut. However, gold has yet to reach the all-time high of 2,532 USD, as it encounters active selling pressure near this level. The US GDP statistics due on Thursday could influence further gold price movements.

US GDP is expected to rise by 2.8% in Q2. A more significant uptick would support the US dollar and contribute to a decline in the XAUUSD pair. Conversely, if the data turns out worse than forecasted, gold may gain another driver for further growth, possibly reaching a new high of 2,532 USD.

XAUUSD technical analysis

On the H4 chart, XAUUSD quotes are experiencing a steady bullish trend, trading within an ascending price channel where a triangle pattern has formed. However, gold has yet to surpass an all-time high of 2,532 USD, with XAUUSD quotes encountering active selling in this area.

The short-term XAUUSD price forecast suggests that the price could reach the 2,600 level soon if bulls hold within the ascending channel and break above 2,532. A decline below the 2,483-2,477 support area would invalidate this scenario and could set the stage for a downward correction.

Summary

XAUUSD quotes hold above 2,500 USD but failed to break through the 2,532 level so far, increasing the likelihood of a downward correction. The US GDP statistics due on Thursday could drive further gold price movements.