Fundamental Analysis - Gold prices have surged, with a monthly increase of 4.81% in August, marking the best performance since April, currently trading around $3450 per ounce [1] - The rise in gold prices is primarily driven by the latest U.S. inflation data, with the Personal Consumption Expenditures (PCE) index showing a monthly increase of 0.2% and an annual increase of 2.6%, aligning with market expectations [1] - Market expectations for a 25 basis point rate cut by the Federal Reserve in September have increased from 85% to 87% following the inflation data release, with predictions of one to two rate cuts throughout the year [1] Additional Factors - The U.S. dollar index has weakened, dropping 2.2% in August, which has made gold cheaper for international buyers, thus boosting demand [3] - The U.S. bond market has shown significant divergence, with the two-year Treasury yield experiencing its largest monthly drop in a year, down 33 basis points to 3.619%, reflecting strong expectations for lower short-term rates [3] - Political risks, such as concerns over the independence of the Federal Reserve due to actions by former President Trump, are also influencing gold prices [3] Technical Analysis - Gold prices closed strongly on Friday, reaching a near historical high of $3453, indicating potential for a breakout from the current trading range [5] - The market is currently testing resistance around $3450, with support expected in the $3420-$3430 range [5] - Short-term trading strategies suggest attempting to buy near $3450 with a stop loss at $3455, targeting levels around $3433-$3423 [6]