Spot gold continued its intraday upward trend in Asian trading on Tuesday (August 5), currently trading around $3,380/oz. Driven by weak US economic data, rising expectations of a Federal Reserve rate cut, and escalating global trade tensions, spot gold continued its upward trend from Friday, reaching an intraday high of $3,385.26/oz before closing at $3,373.38/oz, its highest level since July 24, up approximately 0.3% and marking its third consecutive day of gains.

The gold market's continued rally is no accident; it is the result of a combination of expectations of a Federal Reserve rate cut, global trade conflicts, and geopolitical risks. Weak US economic data provides the rationale for a rate cut, while low yields and a weak dollar further enhance gold's appeal. Meanwhile, Trump's tariff policies and geopolitical divisions have heightened market uncertainty, boosting gold's safe-haven appeal. Today's trading day will see the release of the US June trade balance and the July ISM non-manufacturing PMI data, which investors should pay close attention to.

Gold's 4-hour Bollinger Bands are also expanding, but the price is already nearing its upper limit. Furthermore, momentum has weakened after the MACD golden cross, and the RSI has retreated from overbought territory, suggesting a possible short-term correction. The hourly Bollinger Bands are flattening, the MACD fast and slow lines are stagnant, and the RSI has also retreated from overbought territory, significantly weakening upward momentum. Therefore, today's market is likely to be volatile, and buying low and selling high may be more appropriate. Yesterday, the price briefly surged to 3385 but failed to hold, indicating significant upward pressure. If it can break through 3400, the next target could be 3430. Conversely, a break below 3330 could signal a deeper correction.

From the 4-hour analysis, the short-term operation strategy for gold today is to go long on pullbacks and short on rebounds. The short-term focus on the upper side is 3395-3400 resistance, and the short-term focus on the lower side is 3350-3340 support. Pay special attention to the support of the 3330-35 watershed between bulls and bears.

Disclaimer: The article is contributed by the market analyst from Bitop market observation team. The content is solely for personal opinions and sharing. The analysis is time-sensitive and provided for reference and discussion only. It does not constitute any investment advice. The market is risky, so investing should be done cautiously.