XAU/USD continues to trade within a bullish channel despite the ongoing downward correction. As of today, Gold is priced at $2499 per Troy Ounce. The moving averages suggest a short-term bullish trend, as prices have recently broken above the signal lines, highlighting buying pressure and the possibility of further growth. We can anticipate a bearish correction soon, with a test of the support level near $2470. A bounce from this area may lead to continued upward movement in Gold prices, targeting levels above $2620.
Key Signals for XAU/USD:
- Support Test: A test of the support line on the relative strength index (RSI) will be a key indicator of a potential price increase.
- Channel Breakout: A breakout from the lower boundary of the bullish channel would further support the upward trend.
Risk Factors:
- A fall below the $2420 level would invalidate the bullish outlook, signaling a potential decline towards $2385. If this level is breached, it could indicate continued downward momentum.
Summary: The XAU/USD forecast for August 29, 2024, anticipates a bearish correction followed by a potential rebound from the $2470 support level, leading to a continued rise in Gold prices with targets above $2620. A drop below $2420 would negate this scenario, opening the door for further declines towards $2385.