XAU – Gold price are struggling, testing $3,400

Gold prices continued their upward trend on Wednesday, approaching $3,400. Investors closely watched upcoming inflation data for clues about interest rate cuts. Concerns about the Fed's independence linger after US President Trump attempted to fire a Fed governor. US Personal Consumption Expenditures (PCE) data, the Fed's preferred inflation indicator, will be released on Friday and may provide clues about interest rate trends. The PCE price index is expected to increase by 2.6% in July, unchanged from June. According to the CME FedWatch Tool, the market is pricing in an 87% probability of a 25 basis point rate cut by the Fed at next month's policy meeting.

Gold prices have been trading sideways against several short- and medium-term moving averages for several weeks. After initially breaking out, gold has broken out of its previous narrow range, suggesting the possibility of further gains in the short term. Nearest resistance is expected at $3391 and $3409. The key level is the descending trend line formed by three peaks since April, currently at $3426. A further break above this level will further solidify gold's upward trend, with medium-term targets expected to reach $3450 and even the highly anticipated $3500. Nearest support is expected to initially target $3375 and $3354. The key support is expected to be the 100-day moving average. Note that last week's multiple-day lows were also close to the 100-day moving average, and after hitting it the previous Wednesday, the price rebounded significantly. The 100-day moving average is currently at $3330.

London Gold on August 28:
Early forecast range: 3384 – 3391
Resistance: 3400 – 3409 – 3415
Support: 3375 – 3365 – 3354

SPDR Gold Trust Gold Holdings:
August 18 – 965.37 tons
August 19 – 962.21 tons
August 20 – 958.21 tons
August 21 – 956.77 tons
August 22 – 956.77 tons
August 25 – 958.49 tons
August 26 – 959.92 tons
August 27 – 962.50 tons

27/8 AM London Gold Fix: $3381.9 
27/8 PM London Gold Fix: $3376.35 

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