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Gold Analysis: Gold Recovers from Recent Losses

By Mahmoud Abdallah

Mahmoud has been working fulltime in the Foreign Exchange markets for 12 years. Offers his analysis, articles and recommendations at the most renewed Arabic websites specialized in the global financial markets, and his experience gained a lot of interest among Arab traders. Works on providing technical analysis, market news, free signals and more with follow up for at least 12 hours a day, and aims to simplify forex trading and the concept of tra...

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Today’s Gold Analysis Overview:

  • The overall Gold Trend: Neutral with a downward bias.
  • Gold Support Levels Today: $3330 – $3310 – $3260 per ounce.
  • Gold Resistance Levels Today: $3370 – $3400 – $3460 per ounce.

Gold Analysis 18/08: Recovers from Recent Losses (Chart)

Today's Gold Trading Signals:

  • Buy gold from the $3320 support level, with a target of $3400 and a stop-loss at $3300.
  • Sell gold from the $3390 resistance level, with a target of $3280 and a stop-loss at $3430.

Technical Analysis of Gold Price (XAU/USD) Today:

At the start of this week's trading, spot gold prices rose to the $3353 resistance level, where they are consolidating at the time of writing. This marks a recovery from a two-week low of around $3324. Recently, the gold price index is recovering as investors anticipate the meeting between US President Donald Trump and Ukrainian President Volodymyr Zelensky to discuss a peace deal with Russia. Zelensky will be joined by prominent European leaders when he meets with Trump later today.

This follows a highly anticipated summit last Friday between Trump and Russian President Vladimir Putin, which failed to produce any breakthrough on a ceasefire. However, Putin did agree to allow the US and Europe to provide strong security guarantees to Ukraine as part of a final agreement to end the war.

Meanwhile, financial markets will closely monitor Federal Reserve Chairman Jerome Powell's remarks at the Jackson Hole Symposium, as well as the minutes of the Fed's latest meeting, amid growing expectations of an interest rate cut in September.

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Technical indicators await further upward momentum.

According to the daily chart and gold analysts, the technical indicators are awaiting stronger factors to turn bullish. Technically, the 14-day Relative Strength Index (RSI) is currently around 51, not far from the neutral line that separates bullish and bearish control. Also, the MACD indicator is neutral. The psychological resistance of $3400 per ounce remains the most important level for a stronger upward move. For now, investors are in a waiting period, looking for price dips to establish a new buying base.

A bearish scenario for gold would depend on a successful break below the $3300 level. Otherwise, the upward trend remains favored. Gold trading will continue to be influenced by investor risk appetite, driven by global trade and geopolitical tensions, in addition to central banks' gold purchases and the performance of the US dollar. Clearly, Gold prices fell at the start of the week on expectations that easing geopolitical tensions would reduce the metal's appeal as a safe haven.

Trading Tips:

Traders are advised to be caution in pursuing a strategy of buying gold during every price decline until further notice.

US Treasury yields stabilize.

According to data from reliable trading platforms, the yield on the US 10-year Treasury note stabilized above 4.3% today, August 18, 2025. This follows two consecutive sessions of increases as investors await a key meeting in Washington between President Trump and Ukrainian President Zelensky, as well as the Federal Reserve's Jackson Hole Symposium later this week.

Trump has stated that he will push Zelensky for a quick settlement following his talks on Friday with Russian President Vladimir Putin. While those discussions did not lead to a ceasefire breakthrough, Putin agreed to allow the US and Europe to provide strong security guarantees to Ukraine as part of a final peace deal.

On the monetary policy front, financial markets are pricing in an 84% probability of a 25-basis-point Fed rate cut in September. However, stronger-than-expected producer price inflation and retail sales data have reduced expectations for a larger 50-basis-point cut. Finally, Federal Reserve Chair Jerome Powell is expected to provide further guidance at Jackson Hole.

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Mahmoud has been working fulltime in the Foreign Exchange markets for 12 years. Offers his analysis, articles and recommendations at the most renewed Arabic websites specialized in the global financial markets, and his experience gained a lot of interest among Arab traders. Works on providing technical analysis, market news, free signals and more with follow up for at least 12 hours a day, and aims to simplify forex trading and the concept of trading for his audience.

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