Gold Monthly Forecast: August 2024 (Chart)
(MENAFN- Daily Forex)
The Gold market has been very noisy during the month of July, as we had initially made a fresh, new high, only to turn around and show signs of weakness. Ultimately, the market continues to see a lot of noise near the $2400 level, an area that of course has a certain amount of psychology attached to it. If we do break above there and can sustain that upward pressure, I think at that point in time it's very likely the gold will continue to go much higher.
All things being equal, the $2300 level is an area that a lot of people will be paying close attention to, as it has proven itself to be supportive. The market of course is going to come in and defend this I believe on a pullback, and therefore I think it's a situation where value hunters will come in and take advantage of“cheap gold”. However, at the beginning of the month we have a lot of noise that could come into the picture and cause havoc in the gold market .
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Ultimately, the Federal Reserve, the Bank of Japan, and the Bank of England are all in focus. After all, this is a market that is likely to pay close attention to what central bankers around the world will have to say. After all, the entire interest rate situation is a bit in flux at the moment, due to the fact that the global economy seems to be slowing down, and people are starting to question whether or not central banks are going to start cutting rates in order to stimulate economies. If interest rates drop, that should help gold over the longer term, as it is of course an interest rate sensitive commodity.
Ultimately, I do think this is a market that when it dips, you'll be looking for buying opportunities and this of course central banks around the world shock everybody. With this, think you get a situation where traders are just simply looking for value in a market that is obviously very bullish. I have no interest in trying to short this market as it has been so bullish.
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