During Monday's (August 18) Asian trading session, spot gold experienced a sudden sharp rally, with prices climbing to around $3357 per ounce, representing a daily gain of over $20. Earlier in the Asian morning session, gold had dropped to $3323.50 per ounce. FXStreet senior analyst Dhwani Mehta provided technical analysis of gold's price movement.

Mehta noted that gold touched a near 11-day low of approximately $3325 per ounce during Monday morning trading, but subsequently rallied toward $3350 per ounce amid emerging geopolitical risks. Investor focus has now shifted to the US-Ukraine talks.

Mehta pointed out that geopolitical uncertainty continues to play a key role in driving safe-haven demand for gold, the traditional store of value.

US President Trump and Russian President Putin held a highly anticipated meeting in Alaska over the weekend, but failed to reach a peace agreement regarding Ukraine.

Consequently, all attention has turned to Monday's meeting between Trump and Ukrainian President Zelensky.

**Gold Technical Analysis**

Mehta indicated that the daily chart shows gold lacking clear direction, with the 14-day Relative Strength Index (RSI) hovering around the 49 level.

A breakthrough above the confluence area of the 21-day Simple Moving Average (SMA) and 50-day moving average at $3350 per ounce would be crucial for gold to resume its recovery momentum from early August.

Mehta stated that the next bullish target for gold is seen at last week's high of $3375 per ounce, followed by $3400 per ounce.

On the other hand, Mehta added that if gold breaks below the intraday low of $3324 per ounce, the 100-day Simple Moving Average (SMA) at $3307 per ounce could provide immediate support. Should gold decline further, prices would challenge the July 31 low of $3274 per ounce.

As of 12:50 Beijing time, spot gold was trading at $3356.63 per ounce.