August Gold Test: It is difficult to rise without breaking the resistance of 3381. If it falls below 3274, it may trigger a deep correction!
2025-08-07 09:37:46
On Thursday (August 7) in the Asian session, spot gold fluctuated up 0.3% and is currently trading around $3,378.88 per ounce; gold prices had previously fluctuated narrowly for three consecutive days.
Gold prices recently broke through the annual upward trend line before quickly retracing. After this pullback, gold prices are now retesting the upper resistance level of the key price pivot area. A consolidation range, guided by the weekly and monthly opening prices of spot gold, is emerging. Whether it can break through will determine the next phase of the trend.
3374/81 is the key resistance level, followed by 3432/51 and finally 3500. The support below is now at 3345, followed by the key support level of 3274/90 and finally 3240/47.
Current Gold Price Status: Gold prices broke out of their yearly uptrend last month but have since retreated sharply. Currently, in early August, gold prices are testing a key resistance area. This level is crucial in the short term, as a breakout could open the door to further gains. A consolidation range, defined by price fluctuations over multiple weekly and monthly charts, is developing below the current gold price. This area is clearly the dividing line between bulls and bears on the short-term gold/USD chart.
Gold price daily chart
Technical Outlook: In July's gold market, we noted that a breakout from the July opening range focused market attention on the month-end high, a high previously reached three times. Gold prices have now reached resistance in the short-term uptrend. As can be seen, after gold reached resistance, it plummeted nearly 5% from its high. It then rebounded sharply after the disappointing US non-farm payroll report on Friday (August 1st).
For the past three days since August 7th, gold prices have been testing the high-volume resistance level of 3374/81, defined by the 61.8% retracement of the June decline and the all-time high daily close. It's important to note that the upper parallel lines of the descending Andrew's tuning fork converged at this high-volume resistance level this week, and a breakout above this level is needed to propel prices higher. This week, watch for gold's performance within this sub-range.
A closer look at the gold price trend shows that the spot gold price is forming a consolidation area near the opening price of this week along the lower resistance level.
The initial support level for spot gold prices is at 3345, and below it is the 3274-3290 range formed by the June closing low and the August opening price. If the price falls below this range, it may mean a deeper adjustment. If the adjustment continues, the subsequent support will be in the 3240-3247 range formed by the May low closing price and the 61.8% retracement level of the May rise, as well as the 61.8% extension level of 3217 of the decline since the high point of the year.
If the price of gold breaks through the central price range upward, it will hit the key resistance level, that is, the 3432-3451 range formed by the historical highest closing price and the June high. If this range is touched, it is expected to have more obvious fluctuations. The closing price needs to break through this range to indicate the resumption of the upward trend, and then point to the historical high of 3500 and above.
Gold Price 240 Minutes
At the same time, you can pay attention to the US COMEX gold inventory. If the gold price breaks through in the future, the inventory needs to be replenished, otherwise there may be a divergence between quantity and price.
In summary: Gold is currently testing resistance in a key trading zone, and a consolidation range is forming below this resistance level, centered around the monthly and weekly opening prices. This consolidation below resistance, awaiting a potential breakout, may provide trading guidance. From a trading perspective, gold prices must remain above this resistance level for further gains. A final close above 3451 is needed to propel this bullish trend into the next phase.
At 9:34 Beijing time, the price of gold is currently $3319.01 per ounce.
Gold prices recently broke through the annual upward trend line before quickly retracing. After this pullback, gold prices are now retesting the upper resistance level of the key price pivot area. A consolidation range, guided by the weekly and monthly opening prices of spot gold, is emerging. Whether it can break through will determine the next phase of the trend.
3374/81 is the key resistance level, followed by 3432/51 and finally 3500. The support below is now at 3345, followed by the key support level of 3274/90 and finally 3240/47.
Current Gold Price Status: Gold prices broke out of their yearly uptrend last month but have since retreated sharply. Currently, in early August, gold prices are testing a key resistance area. This level is crucial in the short term, as a breakout could open the door to further gains. A consolidation range, defined by price fluctuations over multiple weekly and monthly charts, is developing below the current gold price. This area is clearly the dividing line between bulls and bears on the short-term gold/USD chart.
Gold price daily chart
Technical Outlook: In July's gold market, we noted that a breakout from the July opening range focused market attention on the month-end high, a high previously reached three times. Gold prices have now reached resistance in the short-term uptrend. As can be seen, after gold reached resistance, it plummeted nearly 5% from its high. It then rebounded sharply after the disappointing US non-farm payroll report on Friday (August 1st).
For the past three days since August 7th, gold prices have been testing the high-volume resistance level of 3374/81, defined by the 61.8% retracement of the June decline and the all-time high daily close. It's important to note that the upper parallel lines of the descending Andrew's tuning fork converged at this high-volume resistance level this week, and a breakout above this level is needed to propel prices higher. This week, watch for gold's performance within this sub-range.
A closer look at the gold price trend shows that the spot gold price is forming a consolidation area near the opening price of this week along the lower resistance level.
The initial support level for spot gold prices is at 3345, and below it is the 3274-3290 range formed by the June closing low and the August opening price. If the price falls below this range, it may mean a deeper adjustment. If the adjustment continues, the subsequent support will be in the 3240-3247 range formed by the May low closing price and the 61.8% retracement level of the May rise, as well as the 61.8% extension level of 3217 of the decline since the high point of the year.
If the price of gold breaks through the central price range upward, it will hit the key resistance level, that is, the 3432-3451 range formed by the historical highest closing price and the June high. If this range is touched, it is expected to have more obvious fluctuations. The closing price needs to break through this range to indicate the resumption of the upward trend, and then point to the historical high of 3500 and above.
Gold Price 240 Minutes
At the same time, you can pay attention to the US COMEX gold inventory. If the gold price breaks through in the future, the inventory needs to be replenished, otherwise there may be a divergence between quantity and price.
In summary: Gold is currently testing resistance in a key trading zone, and a consolidation range is forming below this resistance level, centered around the monthly and weekly opening prices. This consolidation below resistance, awaiting a potential breakout, may provide trading guidance. From a trading perspective, gold prices must remain above this resistance level for further gains. A final close above 3451 is needed to propel this bullish trend into the next phase.
At 9:34 Beijing time, the price of gold is currently $3319.01 per ounce.
- Risk Warning and Disclaimer
- The market involves risk, and trading may not be suitable for all investors. This article is for reference only and does not constitute personal investment advice, nor does it take into account certain users’ specific investment objectives, financial situation, or other needs. Any investment decisions made based on this information are at your own risk.
