Gold Price Surges Above $2500 Amid Weaker US Dollar: Key Levels and Strategy for August 19, 2024

 Gold Daily Outlook (August 19, 2024)

Ichimoku Analysis (4-Hour Chart):

Tenken-Sen: $2447

Kijun-Sen: $2442

Market Update:

Gold has recently surged above $2500, driven by a weakening US dollar, and reached a high of $2509. It is currently trading around $2504. As we approach the Jackson Hole symposium this week, markets are looking for clues on future monetary policy directions.

Recent data showing easing inflation and weaker US economic performance has increased expectations for a potential rate cut by the Federal Reserve in September. The CME Fed Watch tool now indicates a 71.50% chance of a 25 basis point rate cut, up from 50% just a day earlier.

Key Factors Influencing Gold Prices:

Global Stock Market: A bullish stock market generally exerts downward pressure on gold prices.

US Dollar Index: The dollar is showing a bearish trend, which typically supports higher gold prices.

US 10-Year Bond Yield: The bond yield is also bearish, another factor that is positive for gold.

Technical Analysis:

Support Levels:

Immediate support is around $2470.

If gold drops below $2470, it could target $2450, $2430, and $2400.

Resistance Levels:

Minor resistance is at $2510.

A move above $2510 could push gold towards the next target of $2554.

Trading Strategy:

Consider buying gold on dips around $2450-$2455, with a stop-loss set at $2430. The target prices for this strategy are $2510 and $2550.