The gold market has been consolidating gains below the $2,530 resistance level, indicating a period of indecision among traders. The 4-hour chart of XAU/USD shows a key contracting triangle forming with support at $2,495, suggesting that a breakout is on the horizon. While gold prices have remained stable above the 100 Simple Moving Average and the 200 Simple Moving Average, the bears have managed to keep the price below the $2,520 and $2,530 resistance levels. If the price breaks below the $2,480 support, we might see further downside movement towards $2,465 and the 200 Simple Moving Average. However, a clear move above the $2,530 resistance could signal more upside potential, with the next major resistance at $2,550 and a possible rally towards $2,565.
On the other hand, oil prices have been facing downward pressure, with a potential revisit of the $65.00 support level. The price extended losses below $68.50, indicating a bearish momentum in the near term. While there may be chances of more downsides in the short run, it is essential to monitor key support and resistance levels to gauge the future direction of oil prices. geopolitical events, global demand, and supply dynamics will continue to influence the price of oil in 2024.
The US Consumer Price Index is expected to increase by 2.6% in August 2024, down from 2.9% in the previous month. This data point is crucial in understanding inflationary pressures in the economy, which can impact the purchasing power of consumers and the overall macroeconomic environment. It is important for investors and policymakers to closely monitor CPI figures to make informed decisions regarding asset allocation and monetary policy.
The outlook for gold and oil prices in 2024 is subject to various factors such as market sentiment, economic indicators, and geopolitical events. While gold prices may face near-term resistance levels, a breakout could lead to a potential upside rally. On the other hand, oil prices may continue to experience downward pressure, with key support levels to watch for in the coming months. As investors navigate through the volatility in financial markets, staying informed and adapting to new developments will be critical for successful decision-making.