Spot gold prices fluctuated slightly lower in early Asian trading on Monday (August 25), currently trading around $3,362.21 per ounce. Last Friday, gold prices surged 1%, reaching a two-week high of $3,378.69 per ounce before closing at $3,371.78. Federal Reserve Chairman Powell's speech at the annual Jackson Hole central bank symposium was a timely relief, allaying market concerns about inflation and igniting investors' eager anticipation for a September rate cut. The simultaneous decline in the US dollar further amplified gold's appeal, as the US dollar index plummeted 0.96% to 97.66 points, making it cheaper for investors holding other currencies to buy gold.

Powell's dovish statement was clearly viewed as a positive signal, and the recent weakness in gold prices has become an excellent buying opportunity. Gold is expected to continue its upward trajectory. This not only drove a strong rebound in gold prices but also caused a sharp drop in the US dollar exchange rate, ushering in a new wave of bullishness in the gold market. Despite the continued sluggish physical demand in Asia, Wall Street analysts and retail investors remain confident in the outlook for gold.

Based on a 4-hour chart, the primary support for gold lies in the previously crucial 3348-3350 area. This area is expected to serve as the first line of defense for bulls. Even a brief intraday break would be considered a short-term technical correction. The key resistance level above is the 3400 mark. Whether or not this level is broken will be crucial in determining whether bulls can open up further upside and maintain the trend.

The 1-hour moving average continues to form a golden cross and is in an upward bullish arrangement. There is still upward momentum in the 1-hour period. After the breakthrough, there was no rapid rise and fall at a high level. Basically, the bulls have stabilized at a high level. The short-term support for gold is 3350. If it falls back to the support near 3350 in the morning, gold will break through and rise on Friday. The short-term bullish volume is still there. The short-term decline and adjustment will continue to provide opportunities for long positions. Overall, the short-term operation strategy for gold today is to mainly go long on pullbacks and short on rebounds. The short-term focus on the upper side is the 3380-3390 resistance line, and the short-term focus on the lower side is the 3350-3340 support line.

Disclaimer: The article is contributed by the market analyst from Bitop market observation team. The content is solely for personal opinions and sharing. The analysis is time-sensitive and provided for reference and discussion only. It does not constitute any investment advice. The market is risky, so investing should be done cautiously.