Gold Market Analysis:

On August 18th, gold fell 1.8% this week, essentially holding steady around $3,336. On August 14th local time, July PPI rose 0.9% month-over-month, exceeding market expectations of 0.2% by 0.7 percentage points, marking the largest monthly increase since June 2022. The year-over-year growth reached 3.3%, significantly higher than the expected 2.5%, representing the fastest pace since February. This data has somewhat shaken market confidence in a Federal Reserve rate cut in September, with investor bets on a 25 basis point Fed rate cut in September retreating from over 95% the previous day to 92%, thereby putting pressure on gold prices. However, news emerged this morning that US-Russia negotiations failed, though achieving peace may require Ukrainian leadership participation in a second meeting. The outcome of US-Russia talks will play a crucial role in gold price movements.

Gold Technical Analysis:

Gold prices closed with a bearish candle on August 14th, returning to the lower rail of the descending channel at 3330-3340, indicating weakening bullish momentum. The upper channel resistance lies at 3365-3375, and breaking through this area could open upside space to 3380-3400. Operationally, we recommend primarily shorting on rallies with supplementary long positions on dips. For upside resistance, focus first on the 3365 area, with continued downside exploration to 3330 or lower to 3315 below this level. If resistance is broken, pay close attention to pressure around 3365. For support, watch the 3315 area - first touch can be considered for long positions, and if it falls back to around the 3300 major level, long positions can be initiated. Overall, today's short-term trading strategy for gold suggests primarily shorting on rebounds and supplementarily going long on pullbacks, with key short-term upside resistance at 3348-3358 and key short-term downside support at 3320-3310.