XAUUSD price surged on Friday, reaching new annual and all-time highs of 2,483 USD. A rise in gold prices is driven by fundamental factors. Find out more in our XAUUSD analysis for today, 19 August 2024.
XAUUSD forecast: key trading points
- Market focus: gold set a new all-time high of 2,510 USD on Friday
- Current trend: gold is trading in a strong uptrend, with growth likely to continue
- XAUUSD forecast for 19 August 2024: 2,510 and 2,483
Fundamental analysis
XAUUSD quotes surged during Friday’s trading, reaching a new all-time high of 2,510 USD and adding as much as 3% over a week. A rise in gold prices was primarily driven by heightened expectations of a Federal Reserve interest rate cut in September. Market participants are looking forward to the Jackson Hole Symposium this week.
In his speech at this symposium, Federal Reserve Chair Jerome Powell may give new hints about further monetary policy easing before the end of the year. Demand for gold is also supported by central banks, which increase their gold reserves, and mounting geopolitical tensions in the Middle East.
XAUUSD technical analysis
XAUUSD quotes are in a strong uptrend on the H4 chart. A triangle price pattern also formed, with the price securing above its upper boundary. This indicates a potential further rise in the quotes with a likely target at 2,600 USD per troy ounce.
The short-term XAUUSD price forecast suggests that if bulls hold the price above the previous high of 2,483, the price could maintain its upward trajectory and reach the 2,600 USD level in the short run. If quotes fall below the 2,483-2,477 USD support area, this would invalidate the scenario, creating conditions for a downward correction.
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Summary
XAUUSD price is steadily rising, reaching a new all-time high of 2,510 USD. A rise in gold prices is driven by expectations of a Federal Reserve interest rate cut, demand from central banks, and tensions in the Middle East.