On August 28th, despite gold's upward momentum encountering temporary resistance and adjustment, Fed Chairman Powell's dovish signals and Trump's announcement of dismissing Fed board member Cook have strengthened market expectations for a September Fed rate cut, continuing to support gold price increases. From a trading perspective, downside support levels to watch include $3,367 and $3,355, while upside resistance levels include $3,394 and $3,410.
Looking at subsequent price action, gold stabilized and fluctuated within a range of $3,373 to $3,385 during European trading hours. After the U.S. market opened, gold broke higher and repeatedly tested the $3,400 round number resistance level. After encountering resistance, it pulled back to the $3,385 short-term support level and stabilized. Currently, gold is trading around $3,394. Overall, following a brief consolidation, gold continued its upward trajectory, reaching the target resistance level of $3,400, with bulls maintaining their advantage.
Market analysts believe that Wednesday's temporary pressure on gold prices was primarily due to a rebound in the dollar and U.S. Treasury yields, with some profit-taking after recent consecutive gains. However, after the short-term decline, gold quickly stabilized and rebounded, recovering all losses and pushing further higher. This was mainly supported by rate cut expectations and safe-haven buying. Specifically, Fed Chairman Powell's dovish remarks reinforced market bets on a September Fed rate cut, significantly increasing the likelihood of consecutive cuts throughout the year. Additionally, Trump's announcement of dismissing Fed board member Cook challenges the Fed's independence. Since Trump supports rapid rate cuts, this strengthens market expectations for Fed rate cuts while also enhancing gold's safe-haven demand due to growing concerns. Looking ahead, focus will be on the U.S. second-quarter GDP data and July PCE data, which will influence Fed monetary policy.
On the daily chart, gold's rebound continues to push higher with strong short-term momentum. For downside support, attention should be paid to the 5-day moving average at $3,385, which represents the current intraday low and the level from which gold rebounded and broke higher. Secondary support is at the daily Bollinger Band middle line at $3,362. For upside resistance, focus on the $3,400 round number level, which represents the intraday high and the breakout attempt levels from Wednesday and Thursday. An upward break could target the August high of $3,410, which is also the current daily Bollinger Band upper line. Further gains could target the July high of $3,440. The 5-day moving average and MACD indicators show golden crosses, while KDJ and RSI indicators also display golden crosses, indicating that short-term technicals favor continued bullish momentum.
Daily Trading Outlook: Trump's announcement of dismissing Fed board member Cook challenges the Fed's independence, which strengthens rate cut expectations while attracting safe-haven buying, supporting gold price increases. Trading recommendations suggest a range-bound approach, watching downside support at $3,385 and $3,362, and monitoring upside resistance at $3,400 for breakthrough potential. An upward break could target $3,410, with further gains potentially reaching $3,440.