Quick overview
- Gold has rebounded to $3,348 an ounce after recent lows, supported by easing U.S. Treasury yields.
- Traders are closely monitoring diplomatic talks involving President Trump and Ukrainian President Zelenskiy regarding potential peace with Russia.
- The upcoming Federal Reserve’s Jackson Hole symposium is raising market caution, with expectations of a September rate cut that could benefit gold.
- Technically, gold is forming a symmetrical triangle, with key resistance at $3,405 and support near $3,331, indicating a potential breakout.
Gold recovered from recent lows, trading at $3,348 an ounce after dipping earlier in the week. The rebound came as U.S. Treasury yields slipped from two-week highs, giving bullion some breathing room. Traders are also watching a tense round of diplomacy in Washington, where President Donald Trump is set to meet Ukrainian President Volodymyr Zelenskiy and European leaders in an effort to broker a potential peace framework with Russia.
Sources familiar with the talks suggest Moscow may propose limited withdrawals from Ukrainian territory in exchange for Kyiv ceding parts of the east. Analysts note markets are hesitant ahead of these meetings, with safe-haven flows into gold supported by geopolitical risk.
Fed Symposium Adds to Market Caution
The next big event on the calendar is the Federal Reserve’s Jackson Hole symposium. Economists polled by Reuters expect a September rate cut — the first this year — and possibly another before year-end. A lower interest-rate environment tends to benefit non-yielding assets like gold, which often serve as a hedge against uncertainty.
🌍 Forex Market Update-
💰 Gold rebounds from $3,324 on Fed cut bets, lower yields, and safe-haven demand ahead of Trump–Zelenskiy peace talks. 🪙📈📊 EUR/USD eases near 1.1710 after gains, but daily chart signals bullish bias within an ascending channel. 📈💶
⚡ Silver…
— PM Financials Ltd (@PmFinancials) August 18, 2025
Benchmark 10-year Treasury yields eased after Friday’s rally, easing pressure on gold. Tim Waterer, chief market analyst at KCM Trade, said: “Gold was on the back foot early, but buyers stepped in near $3,330 as a value play. Softer yields added to the support.”
Triangle Setup Points to Breakout
On the technical side, gold is pressing against a key inflection zone. The 2-hour chart shows a symmetrical triangle forming between descending resistance at $3,405 and ascending support near $3,331.
Key observations:
- The 50-period SMA at $3,348 is immediate resistance.
- RSI at 53 is neutral, leaving room for upside.
- MACD is flattening, hinting at a bullish crossover.
Traders are watching the $3,373 pivot. A breakout above that level, ideally with strong volume, could open a path to $3,405 and $3,433. On the downside, a failure to hold $3,331 may drag prices toward $3,307 or $3,284.
Trade setup:
- Long entry above $3,373, with stops under $3,331 and targets at $3,405/$3,433.
- Short entry below $3,331, targeting $3,307 and $3,284.
This coiling structure resembles a spring being wound tighter. For now, patience may be the best strategy as gold lines up for its next decisive move.
Arslan Butt
Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.
His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.
His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
