On Thursday (August 28) during Asian trading hours, spot gold held steady, last trading at $3,390.91 per ounce. U.S. President Trump’s sudden announcement of the dismissal of Fed Governor Cook—citing “misconduct” in his mortgage application—directly challenged the Federal Reserve’s independence and instantly ignited safe-haven demand. Gold prices surged to their highest level in over two weeks, with spot gold closing at its strongest level in nearly two weeks. This political and financial collision is pushing gold toward the forefront of a new bull cycle.

The U.S. dollar weakened on Thursday, reflecting growing expectations of rate cuts. A softer dollar lowers the cost of gold for holders of other currencies, providing further support. Bitop’s market analysis team suggests investors focus on U.S. GDP data due later today, which could trigger significant market volatility, as well as Friday’s (August 28) release of the July Personal Consumption Expenditures (PCE) price index—the Fed’s preferred inflation gauge. Markets expect U.S. July PCE to rise 2.6% year-on-year, unchanged from the prior month. According to the CME FedWatch tool, investors are pricing in more than an 88% probability of a 25-basis-point rate cut at next month’s FOMC meeting.

On the daily chart, gold prices are trading above all major moving averages. The 20-day simple moving average (SMA) has edged up to around $3,357.20. The 100-day and 200-day SMAs remain below the shorter-term average but continue trending higher, aligning with the prevailing bullish trend. Bollinger Bands have narrowed significantly, with the upper band around $3,410 serving as a potential near-term ceiling. Even if the uptrend extends, the move may stall around this level. Given that the latest weekly peak barely exceeded the prior one, technical indicators show limited momentum, displaying only a modest upward bias within positive territory.

On the 4-hour chart, the 5- and 10-period SMAs are fanning out strongly, underscoring bullish strength. Today’s price action has remained in an upward consolidation, but if prices slip back below the 3,375 support level, the market could enter a choppier range. The critical pivot lies at the Bollinger middle band near 3,365—if broken, a stronger bearish shift could follow, targeting 3,350 and 3,320. Buyers have continued to emerge around the 20-period SMA, which remains above the flat 100- and 200-period SMAs. Meanwhile, technical indicators are recovering from mid-range levels and stabilizing comfortably above the neutral line. Wednesday’s outlook suggested maintaining a bullish bias, though the possibility of trend reversal remains. Immediate resistance is seen at the $3,400 level, with support at $3,365. Traders may consider tactical long and short setups around these key pivot levels.

On the daily chart, after a week of steady declines, gold has returned to the $3,300 level, just shy of historical highs. Given current fundamental factors, there’s still room for further downside in the short term, signaling that bearish momentum remains significant. However, as the moving averages have yet to form a clear bearish crossover, a large move before the weekly close is not guaranteed.

On the 4-hour chart, despite previously surging past the $3,400 mark, gold has shown a clear reversal pattern, now trading below short-term moving averages. The MACD has crossed below the zero line, confirming a shift back into bearish territory. If gold loses the $3,300 support level, it may resume its downward trend.

For today's short-term gold trading strategy, it is recommended to focus primarily on buying on pullbacks, with short-selling on rebounds as a secondary approach. In the short term, key resistance is seen in the $3,410–$3,420 range, while key support lies in the $3,380–$3,370 range.

Disclaimer: None of the information contained here constitutes an offer (or solicitation of an offer) to buy or sell any currency, product or financial instrument, to make any investment, or to participate in any particular trading strategy.