Fundamental Analysis - Gold prices are currently fluctuating around $3,334, with a slight decline of 0.3% on August 21, closing at $3,338.45 per ounce, while December futures fell 0.2% to $3,386.50 [1] - The rise of the US dollar index by 0.45% to a two-week high of 98.60 has made gold more expensive for overseas buyers, contributing to the decline in gold prices [1] - The 10-year US Treasury yield increased by 3.4 basis points to 4.329%, while the 2-year yield rose by 4.8 basis points to 3.792%, indicating a slight steepening of the yield curve and a reduction in rate cut expectations [1] - The Dow Jones, S&P 500, and Nasdaq indices all experienced declines, with notable weakness in retail stocks like Walmart impacting market sentiment [1] Economic Data Impact - The complexity of US economic data has increased uncertainty in the gold market, with rising initial jobless claims and weak manufacturing activity in the Philadelphia Fed survey suggesting labor market risks, prompting some investors to seek refuge in gold [2] - Conversely, unexpected increases in existing home sales and accelerated business activity in August, along with manufacturing orders reaching an 18-month high, have supported the rise of the dollar and US Treasury yields [2] Federal Reserve Divergence - Internal disagreements within the Federal Reserve add volatility to gold prices, with various Fed officials expressing differing views on the necessity and timing of rate cuts [5] - Atlanta Fed President Bostic expects only one rate cut this year but acknowledges significant economic uncertainty, while other officials emphasize the need to be cautious about inflation and the potential negative impacts of rate cuts [5] - This divergence reflects the Fed's challenges in balancing a slowing labor market against rising inflation pressures, complicating the policy outlook for investors [5] Geopolitical Factors - Global geopolitical tensions, such as the ongoing Russia-Ukraine conflict and new US sanctions on Iran, are providing potential support for gold prices as they increase global uncertainty [6] - Analysts note that the US credit rating considerations are influenced by trade policies, which may also impact future ratings and support gold prices [6] - Market attention is focused on Fed Chair Powell's upcoming speech at the Jackson Hole symposium, which could reveal the Fed's policy direction and directly affect gold's future trajectory [6] Technical Analysis - On the daily chart, gold prices are maintaining a small range, indicating indecision in the market, with traders advised to monitor for a breakout direction [8] - The short-term trend shows a narrowing range between $3,320 and $3,380, with traders likely to operate within this triangle until a decisive movement occurs [8] Trading Strategy - The recommended trading strategy is to operate within the converging triangle of $3,320 to $3,380, with a stop loss of $10 and a target of $20 to $30 [9] - Traders are advised to pay attention to Powell's speech at 22:00 for potential market-moving insights [9]