Today’s Gold Analysis Overview:
- The overall Gold Trend: Neutral with a downward bias.
- Gold Support Levels Today: $3320 – $3300 – $3260 per ounce.
- Gold Resistance Levels Today: $3370 – $3400 – $3460 per ounce.
Today’s Gold Trading Signals:
- Buy gold from the $3290 support level, with a target of $3400 and a stop-loss at $3270.
- Sell gold from the $3390 resistance level, with a target of $3280 and a stop-loss at $3430.
Technical Analysis of Gold Price (XAU/USD) Today:
Financial market concerns have eased somewhat with the start of meetings between US President Trump and the two sides of the Russian-Ukrainian conflict. As a result, demand for gold as a safe haven has decreased, at least until there is more clarity on a resolution to the European conflict. According to gold trading platforms, the gold price index failed to rebound and break through the $3358 resistance. It quickly fell back toward the $3323 support level, near its lowest price in two weeks.
Keep in mind that the decline in gold prices has intensified as investors focused on US President Donald Trump’s meeting with Ukrainian and European leaders, and the annual Jackson Hole symposium organized by the Federal Reserve. For his part, US President Trump expressed optimism about ending the war in Ukraine during a meeting at the White House with President Zelensky, attended by European and NATO leaders. He added that the United States would be “engaged” in maintaining peace, and that he planned to call Russian President Vladimir Putin after the talks.
This follows a highly anticipated summit last Friday between Trump and Putin, which yielded no significant progress on a ceasefire. In the meantime, financial markets will closely watch Federal Reserve Chair Jerome Powell’s remarks at Jackson Hole, along with the minutes from the latest Fed meeting, amid increasing expectations for a September interest rate cut.
Gold Trading Scenarios for the Coming Days
Bearish Scenario: Based on the daily chart and gold analyst forecasts, a break below the $3325 and $3300 support levels would strengthen the bearish outlook for gold in the coming days. The 14-day Relative Strength Index (RSI) is currently at 47, below the 50 line that separates bullish and bearish control. Technically, the indicator has more room to fall before it reaches oversold conditions. Also, the MACD indicator is trending downward. Selling pressure on gold will increase if a peace agreement is announced between Russia and Ukraine. Furthermore, markets will then shift their focus to the reaction to US trade wars against other global economies and central banks’ gold purchases.
Bullish Scenario: Gold’s upward rebound attempts will not be successful without a renewed push toward the psychological $3400 resistance level.
Improved Sentiment Supports US Dollar Gains
In forex markets, the US Dollar Index (DXY) has improved to the 98.20 resistance level, supported by geopolitical developments and expectations ahead of the Fed’s Jackson Hole Symposium later this week. At the White House, President Trump met with Ukrainian President Volodymyr Zelensky, expressing optimism about ending the war and pledging US involvement in maintaining peace. He also confirmed he would contact Russian President Vladimir Putin after the talks. Following his meeting with Putin on Friday, Trump stated he would press Zelensky for a quick settlement, despite little progress being made.
On monetary policy, financial markets are pricing in an 84% probability of a 25-basis-point Fed rate cut in September. However, stronger-than-expected US producer inflation and retail sales data have reduced expectations for a larger 50-basis-point cut. Federal Reserve Chair Jerome Powell is expected to provide more guidance at Jackson Hole.
Trading Advice:
Traders are advised be continue with a strategy of buying gold on strong dips but without risk, regardless of the strength of the trading opportunities.
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