Gold falls back to $3,350 after unsuccessful test of $3,400

Since early August, gold prices have risen toward $3,400. However, they failed to test this level, which has acted as strong resistance for several months—first forming in April—and since then has consistently triggered downward reversals in gold. On the daily timeframe, the previous correction target at $3,300 remains key support. Gold could drop to this level once again, but in the near term a more favorable area for short position profit-taking would probably be around $3,350.

On the hourly timeframe, gold has broken down from its uptrend that originated at $3,350, the low of August 5. The current downward movement is pausing near the 100-day moving average (EMA100). If support fails here, quotes could target the EMA200, which is now close to the 3,365 level. This is the final barrier before a potential drop to $3,350.

Oscillators confirm the bearish momentum on the daily chart. The MACD, in particular, has entered the negative zone. Fundamentally, tomorrow’s US inflation report for July could put bullion prices under more pressure. Analysts surveyed by Bloomberg anticipate the core consumer price index (CPI) to reach the highest level since January. The impact of import tariffs on inflation is set to intensify.

Meanwhile, volatility in the American gold market was limited by Friday only after the Trump administration invalidated the US Customs Service’s announcement about extending import duties on gold bullion. Officials have pledged to issue an ordinance exempting the precious metal from tariffs. Exporters had initially planned to halt gold shipments to the US, but the market has now returned to normal operation.

Consider the following trading strategy:

Sell gold at the current price. Take profit 1: $3,365. Take profit 2: $3,350. Stop loss: $3,390.