August 21st - Gold staged a rebound yesterday, initially declining to $2,511 during Asian trading hours before starting to recover. During European hours, after breaking above $2,530, short positions were closed decisively and reversed to long positions. US trading saw intraday highs reach $2,549, where long positions were manually closed, recovering significant losses. Gold ultimately closed at $2,547, forming a small bullish candlestick on the daily chart.

On Thursday (August 21st), the dollar weakened yesterday, providing support for gold's advance. However, market participants are preparing for the upcoming Jackson Hole symposium. Meanwhile, Fed meeting minutes revealed that apparently only two policymakers supported rate cuts at the July meeting. Markets are concerned that Powell might downplay rate cut prospects, especially given that July's Producer Price Index (PPI) came in higher than expected.

Market participants are currently in a wait-and-see mode, awaiting clearer policy signals from the Jackson Hole annual symposium. Notably, Trump hinted at potentially announcing Fed Chair candidates early, with focus on "dovish economists," further amplifying policy uncertainty. Should Powell's speech lean hawkish, gold would likely decline sharply. Conversely, a dovish tone could trigger significant gains.

From a technical perspective, the daily chart shows gold trapped in sideways consolidation at elevated levels, with relatively small candlestick bodies indicating a contracting consolidation pattern. Bollinger Bands are narrowing, with price moving sideways near the middle band, showing slight tendency to retreat toward the lower band. Upside resistance continues at the $2,550-60 level - only a decisive break above this zone would enable further upward movement. Conversely, downside support lies at the $2,530-2,520 zone.

In summary, the gold market stands at a critical inflection point. Traders are advised to remain patient, waiting for clear directional signals before establishing significant positions, maintaining strict risk control and appropriately utilizing stop-loss orders for capital protection. In an environment of rising market volatility, position management is more crucial than directional prediction.

Today's recommended trading strategy: Gold: Short at $2,550-2,552, stop loss at $2,560, target $2,520-2,500 zone, hold if broken. If price stabilizes above $2,560, exit shorts on pullbacks and go long accordingly.

Key economic data and events to watch today - Thursday, August 21st, 2025: 20:30 US Initial Jobless Claims for week ending August 16 20:30 US Philadelphia Fed Manufacturing Index for August 21:45 US S&P Global Manufacturing PMI Flash for August 21:45 US S&P Global Services PMI Flash for August 22:00 Eurozone Consumer Confidence Flash for August 22:00 US Existing Home Sales (Annualized) for July 22:00 US Conference Board Leading Index Monthly Rate for July