On August 28, gold prices fluctuated in a sideways pattern around the 4600 level throughout the previous trading day. The Asian session opened with a rally toward 4640, but prices subsequently retreated, with the US session hitting an intraday low of 4566. However, the decline failed to extend into the late session, as prices once again drifted back to consolidate near the 4600 mark. Ultimately, gold settled at 4600, with the daily chart printing a bullish doji candle.
Friday's spot gold action can best be described as "unable to rally convincingly, yet unwilling to decline decisively." Prices remained pinned in a tight band of roughly ten dollars around the 4600 level, with the market positioning itself for a pivotal statement scheduled for later today. At 22:00 Beijing time this evening, Federal Reserve Chair Powell delivers his inaugural keynote address at Jackson Hole. Market participants have largely presumed a hawkish tilt from him, but remain unsure whether he will offer clarity on the September policy path. A hawkish tone would likely lift the US dollar further, potentially driving gold down toward 4530 or even 4500. Conversely, a dovish or ambiguous stance could see gold push above the 4600 resistance and make a move toward the 4630–4645 zone.
Supporting the underlying bull case for gold in August—which has seen prices gain roughly 14%—are several structural factors. US Treasury debt has now surpassed $40 trillion, the Treasury Department has resumed buybacks of long-dated bonds, and 30-year yields recently touched levels not seen since 2007. In addition, global central banks continue their persistent gold accumulation, while the SPDR ETF has been adding small increments over the past couple of sessions, with holdings now sitting above 1,046 tonnes. However, this long-term narrative does little to resolve the day-time vacuum of fresh catalysts that characterizes current trading. What it does provide is the assurance that any significant dip will attract long-term institutional buying interest.
From a technical perspective, yesterday's price action stayed broadly within the expected descending channel structure. The challenge today lies in the fact that prices are now at the tail end of this channel, leaving short-term movements increasingly susceptible to fundamental drivers. The market may require fresh news to determine direction. To the upside, immediate resistance is seen at the channel's upper boundary near 4620, though the 4600 psychological level is likely to be the primary battleground during the Asian and European sessions. To the downside, support is initially found near yesterday's low of 4570, with a technical inclination toward the channel's lower boundary around 4550. Whether prices ultimately break above or below the channel may very well hinge on Powell's speech this evening.
For risk-averse traders, standing aside today appears prudent. Avoid betting on the speech's outcome; instead, allow the weekend to digest the implications before reassessing when markets reopen on Monday. Speeches can bring clarity or ambiguity, and when ambiguity prevails, market interpretation requires time to settle. Trying to guess direction amid uncertainty rarely pays off, whereas waiting for a clearer signal after the weekend often yields a more actionable setup. For aggressive traders, however, placing well-hedged positions with appropriate stop-losses and take-profits could offer some short-term opportunity.
For today's trading strategy, the following approach is suggested: Gold could be sold at 4585–4586, with a stop-loss placed at 4600, and a downside target of 4530–4520. As always, the evening speech will be the key catalyst, and aggressive traders may follow the trend once direction becomes apparent.
Key economic data and events to watch today, Friday, August 28, 2026:
21:45 – US August Chicago PMI
22:00 – US August University of Michigan Consumer Sentiment Index (Final)
22:00 – US August 1-Year Inflation Expectations (Final)
22:00 – US 2026 Nonfarm Payroll Benchmark Revision (Preliminary)
22:00 – Federal Reserve Chair Powell's speech
Disclaimer: This article is for reference only and does not constitute investment advice. Investors should act at their own risk.
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