On Tuesday (August 26), the US dollar index plummeted 0.3% in early Asian trading on the news, sending currencies like the Japanese yen higher. USD/JPY plummeted from 147.87 to 147.00, currently down 0.2%. USD/JPY surged from 3352 to $3386.36 per ounce, a two-week high. It currently trades at $3373.20 per ounce, up approximately 0.23%. The direct trigger for this market volatility was US President Trump's signing of a document dismissing Federal Reserve Governor Tim Cook, effective immediately. This personnel change has three key implications, profoundly impacting the Fed's policy direction and the global gold and foreign exchange markets.

Trump's executive order to remove Federal Reserve Board Governor Tim Cook has directly exacerbated market concerns about the "impairment of the Federal Reserve's independence," becoming a key driver of the decline in the US dollar index. Due to this "continued attack on central bank independence," the US dollar saw a clear decline in early Asian trading, while the Japanese yen and gold also strengthened.

From the daily spot gold chart, gold prices saw a slight rise yesterday, forming a small real-body bullish candlestick pattern. While the broader market volatility remains intact, recent price fluctuations have narrowed further. The MACD indicator has also flattened, providing no valuable reference signals. We recommend maintaining a buy-low-sell-high strategy.

From the 4-hour spot gold chart, gold prices have recently retreated to around 3311, finding support and maintaining a volatile rebound. Currently, prices have rebounded to around 3386 before coming under pressure. Although the MACD indicator has not yet signaled a death cross, the upward trend is approaching a major resistance zone, so caution is advised for aggressive bullish trades. Pressure: 3380-3390-3400 Support: 3370-3360-3350.

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.