Gold Pulls Back in Early Trading

On August 21, 2025, in early trading, international gold prices came under pressure and moved lower. Spot gold traded near $3,340/oz, down about 0.15% for the day. In contrast, silver climbed 0.19% to around $42/oz. Investor sentiment stayed cautious, driven by a strong US dollar, weaker physical demand, and the market’s anticipation of Federal Reserve Chair Jerome Powell’s upcoming remarks at Jackson Hole.

Fed Policy in Focus

The latest FOMC meeting minutes indicate that Fed officials remain concerned that US trade and tariff policies could drive inflation risks higher. Markets currently expect a 25-basis-point rate cut in September. The CME FedWatch tool shows an 85% probability. However, with inflation still above the 2% policy target, the outlook remains uncertain. Investors are closely watching Powell’s speech at Jackson Hole for more decisive signals regarding the Fed’s stance on easing.

Stronger Dollar Caps Gold’s Upside

Because gold is priced in US dollars, a strong dollar index curbs demand by making gold more expensive for investors using other currencies. This dynamic is a key reason for subdued gold prices today.

Technical Support and Resistance Levels

Experts see support for gold in the $3,325–3,300/oz range, with resistance between $3,357 and $3,374/oz. A breakout above resistance could pave the way for new highs. On the other hand, if support fails, gold may test lower price ranges in the near term.

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Risks to Monitor

In the short term, gold’s direction depends on Powell’s policy guidance and US dollar trends.

• If the Fed clearly signals a rate cut, gold could quickly surpass $3,374/oz.
• If the commentary is hawkish, gold prices may retest support at $3,300/oz.

In today’s high-volatility environment, investors should set stop-losses carefully. Be ready to adjust trading strategies as conditions change.