Gold prices are consolidating just below their new record high as markets await the FOMC minutes

Gold remains strong, consolidating just below its new record high of $2,531 set on Tuesday, with a third consecutive daily close above the $2,500 mark, signaling a potential breakout.

The metal continues its steep multi-month uptrend, posting nearly a 22% gain since the start of the year.

Safe-haven demand driven by expectations of Fed rate cuts, geopolitical tensions, uncertainty around the U.S. economy, and the upcoming Presidential Election has pushed gold prices up by almost $500 in 2024.

The technical outlook remains firmly bullish on the daily chart, supporting further gains, though some price correction could occur given overbought conditions and easing bullish momentum.

Markets anticipate dovish signals from today’s FOMC minutes and Fed Chair Powell’s speech on Friday, which should provide more insight into the extent of upcoming rate cuts.

Any limited dips are expected to serve as opportunities for positioning ahead of another rally, with strong support seen at $2,500/$2,483 (psychological level/former peak).

However, a break below the rising 10-day moving average at $2,473 could suggest a deeper correction toward lower supports at $2,439/$2,432 (20-day moving average/Aug 15 higher low).

Res: 2531; 2564; 2600; 2614
Sup: 2500; 2483; 2473; 2450