Gold holds steady above key support level amid market fluctuations

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Gold futures experienced a slight decline on Thursday but maintained a strong position above a critical support level. As of 5:20 PM ET, the most active August 2024 contract was trading at $2,456.40, down $3.50 from the previous close. Despite this minor setback, the precious metal demonstrated resilience by rebounding from an intraday low of $2,442, effectively confirming the first technical support level at $2,440. Major support continues to be found at $2400 per ounce.

The dollar's recent trajectory has been a significant factor in gold's performance. After hitting a short-term peak above 106 on June 27, the greenback experienced a substantial decline of over 2% over the following 17 trading days, reaching an intraday low of 103.61 on Wednesday. Since April, gold has set new record closing prices on three occasions, reflecting strong bullish sentiment among speculators, institutional investors, and central banks globally. This widespread optimism has propelled the precious metal to unprecedented heights, with analysts suggesting further upside potential if investor demand remains robust.

has been a technical market analyst for 25 years. A frequent contributor to STOCKS & COMMODITIES Magazine, he has also written for Futures Magazine as well as Barrons. He is the executive producer of"The Gold Forecast," a daily video newsletter.

 

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