On August 18th, the United States officially expanded its tariff scope on steel and aluminum imports, adding 407 derivative products. Increased tariffs will drive up corporate costs and may trigger market concerns about inflation, theoretically benefiting gold. However, trade wars could also dampen market risk appetite, leading funds to flow toward the US dollar and putting pressure on gold. The Federal Reserve will review the August employment report and consumer price data before its September meeting. This data is crucial for interest rate decisions and will determine whether borrowing cost reductions are described as the beginning of a rate-cutting cycle aimed at shifting monetary policy toward "neutral," or merely an adjustment with potential future actions remaining uncertain.

Prior to the PPI data release, US Treasury Secretary Yellen indicated the necessity of implementing a series of rate cuts to reduce the Federal Reserve's benchmark policy rate range from the current 4.25%-4.50% to around 3%, a level considered neither stimulative nor restrictive to economic activity. The PPI data could complicate the Federal Reserve's interpretation of the situation. Chicago Federal Reserve Bank President Goolsbee, who has voting rights this year, stated Wednesday that despite ongoing inflation concerns, he remains open to a September rate cut. However, he would be worried if prices of goods other than those subject to additional tariffs begin accelerating.

From gold's daily chart perspective, recent price movements show a clear triangular consolidation range that has persisted for a considerable period, seemingly accumulating energy for subsequent significant market moves. The upper resistance of this range remains solid around $3,450, while the lower support sits near $3,280. As time progresses, price volatility continues to narrow, with the entire market resembling the calm before a storm, as everyone waits with bated breath for a catalyst to break the deadlock.

Currently, gold prices oscillate within the $3,330-3,350 range, which coincides with the Bollinger Band middle line and the 50-day moving average, highlighting its significance. This area represents a crucial battlefield for bulls and bears. If gold prices can successfully maintain above $3,350, this would signal a positive development, likely opening upward momentum with upper targets reaching $3,430 and potentially challenging even higher levels.

However, should gold prices unfortunately break below $3,330, the $3,280 support level would become precarious. Once this support fails, gold prices could decline directly toward $3,170. Looking at more specific short-term key levels, upside resistance stands at $3,368, a position that represents both a previously tested but unbroken high and a long-term trendline resistance, making breakthrough challenging. Downside support remains at $3,330, coinciding with daily-level key support, demonstrating the strength of this level.

Overall, if gold prices can strongly break through $3,368, this could initiate a rebound rally, offering market participants hope for upward movement. Conversely, a break below $3,330 could unleash further bearish momentum, accelerating price declines and affecting market sentiment. Given the current unresolved situation, investors need to remain cautious and closely monitor changes at key levels to respond promptly to potential market volatility.