GOLD - USD - Outlook on Gold - 08/14/2024 (GMT)

Technical Perspective:
XAUUSD saw repeated tests of the upper bound of the ascending channel, which is near the 2520 resistance. If XAUUSD sustains its bullish momentum, a further rise towards the Fibonacci confluence levels near 2520 might occur. Conversely, if XAUUSD pared recent gains, the price could retreat toward the 2280 support. Notably, RSI is hovering near the overbought region, suggesting a potential throwback for XAUUSD.

Fundamental Perspective:
XAUUSD extended its rally, buoyed by escalating geopolitical tensions in the Middle East and fears of a broader regional conflict, which heightened the appeal for the safe-haven bullion. Elsewhere, uncertainty surrounding US politics and softer US economic data bolstered expectations for Fed rate cuts, underpinning the dollar's decline and gold's rally.