On Tuesday (August 27th) morning trading in the Asian market, spot gold fluctuated narrowly and is currently trading around $2515.97 per ounce. Gold prices strengthened on Monday, approaching recent record highs, and rose to around $2526.74 per ounce during trading as the market increased its bets on a September rate cut following a dovish signal from Federal Reserve Chairman Powell. Additionally, geopolitical risks in the Middle East sparked safe haven demand.

However, the monthly rate of durable goods orders in the United States in July was stronger than market expectations, causing gold prices to temporarily give up all their gains. However, the monthly rate of core durable goods orders performed poorly, and gold prices still closed up 0.24% on Monday, closing at $251782 per ounce. Last week, gold prices hit a historic high of $2531.60 per ounce. In the short term, the central line of gold prices is clearly biased towards bulls, but the short-term upward momentum has weakened, so it is necessary to guard against the possibility of volatility building a top.

Peter A. Grant, Vice President and Senior Metals Strategist at Zaner Metals, stated on Monday that Powell's dovish signals, safe haven interest, and geopolitical risks in the Middle East during his speech last Friday sparked gold buying on Monday.

Hezbollah launched hundreds of rockets and drones towards Israel earlier on Sunday.

Grant added, "My short-term Fibonacci target (gold price) is $2539.77, and my second target is $2597.15

Powell supported the upcoming interest rate cut last Friday, stating that further cooling of the job market would be unwelcome.

According to the CME FedWatch Tool, the market has fully digested the expectation of the Federal Reserve relaxing its policy next month, with a probability of 69.5% for a 25 basis point rate cut and a probability of approximately 30.5% for a larger 50 basis point rate cut.

Industry officials have stated that gold demand in India and China, two major gold consuming countries, is expected to improve in the coming months.

The US dollar rebounded from an eight month low on Monday, causing concerns among gold bulls as the escalating geopolitical tensions in the Middle East prompted investors to seek safe haven.

The UK market is closed due to a public holiday, resulting in a decrease in trading volume compared to usual.

Amo Sahota, Executive Director of Klarity FX in San Francisco, said, "Geopolitical tensions are definitely a factor. The conflict between Israel and Lebanon has definitely affected market trends.

As of the close, the US dollar index, which measures the exchange rate of the US dollar against six major currencies, rose 0.2%, from a low of 100.53 since the end of December to 100.84.

Klarity's Sahota said, 'To some extent, Powell's speech does sound quite alarmist, especially his comments around the employment report.'. There is no mention of slow and gradual interest rate cuts in his comments. He seems to be issuing an open letter stating that if the data allows, we will significantly and quickly cut interest rates. "

The data released on Monday showed a significant increase of 9.9% in durable goods orders in the United States in July, followed by a decline in June. After the data was released, the US dollar rebounded slightly. However, as a highly anticipated barometer of corporate spending plans, orders for non defense durable goods excluding aircraft decreased by 0.1% in July, and the June data was revised down to an increase of 0.5%.

The yield of US treasury bond bonds did not change much on Monday. The economic data released earlier showed that corporate spending had cooled; The volatility of yield is limited. Investors digested the huge drop in treasury bond bond yield after the Federal Reserve hinted that it was ready to cut interest rates last Friday.

Jim Barnes, head of fixed income at Bryn Mawr Trust, said on Monday, "Prior to the release of economic data, the market had a strong performance this morning, and Powell's speech was actually somewhat dovish, confirming to some extent the trading direction of the market in the previous weeks or since the last labor market report

Jim Barnes said, "I would be surprised if there were any major fluctuations in the labor market and inflation data for August before they are released. The decline in yields to this level is already significant, so it makes sense to take a breather now

The yield on US 10-year treasury bond bonds rose 0.9 basis points to 3.816% on Monday. The yield of 10-year treasury bond is expected to fall for the fourth consecutive month, falling nearly 30 basis points in August, the largest monthly decline since December last year.

Analysts from Wells Fargo said they expect yields to fall on Thursday due to rebalancing and extended duration trades earlier this month, as well as short covering before the end of month auction, and advise clients to go long on duration at Wednesday's close.

Richmond Fed President Barkin stated in an interview that the current employment decision-making approach of "low hiring, low layoffs" adopted by American companies is unlikely to continue, and mentioned the risk of layoffs if the economy weakens.

San Francisco Federal Reserve Chairman Daley stated in an interview that the "time has come" to cut interest rates, and the first action may involve a 25 basis point cut.

There is relatively little economic data on this trading day, so pay close attention to relevant news on the geopolitical situation. Relatively speaking, the upward momentum of gold prices seems to have weakened, and we need to pay attention to the possibility of gold prices fluctuating and peaking.

Russia conducts large-scale airstrikes on power grids in 15 regions of Ukraine, Zelensky plans countermeasures

The Kiev authorities stated that Russia attacked Ukraine with over 200 missiles and drones on Monday, resulting in 7 deaths and hitting energy facilities throughout Ukraine; Neighboring Poland reported that a drone may have entered its airspace.

According to reports, many areas, including parts of Kiev, have experienced power and water outages. Officials have stated that the targets of this attack are electricity or other critical infrastructure across the country.

Russia is intensifying its crackdown on Ukraine's power grid, which Kiev believes seems to be aimed at reducing the performance of the grid system before people need electricity and heating the most in winter.

Ukrainian Air Force Commander Mykola Oleshchuk stated on Telegram that the Air Force shot down 102 out of 127 incoming missiles and 99 out of 109 drones, and called this attack from the air, ground, and sea the "largest" in the war.

Ukrainian Prime Minister Denys Shmygal stated that 15 regions have been damaged. President Zelensky stated, "The energy sector has suffered significant damage

Zelensky said that he has discussed Ukraine's response to the attack with the highest commander: "We are preparing

The Russian Ministry of Defense stated that the Russian military used high-precision weapons to attack Ukraine's important energy infrastructure, claiming that these infrastructures provide support for military industrial complexes. The Russian Ministry of Defense pointed out substations, natural gas compressor stations, and storage facilities for flying weapons.

Poland stated that a search is currently underway after an "object" entered its airspace and may have landed on its territory.

The Polish military told Reuters that it is likely a drone, as its flight trajectory and speed indicate that it is definitely not a missile.

Senior officials in Kiev once again call on allies and weapons suppliers to allow long-range strikes against Russia.

Zelensky also strengthened his call for allies to join Ukraine in shooting down missiles and drones flying over Ukrainian airspace.

US President Biden condemns Russia's attack as' lawless'. He added in Monday's statement that Washington will continue to provide Ukraine with a large amount of energy equipment to repair its systems and support Ukraine's energy grid.

The White House says Gaza ceasefire talks are still ongoing and details are yet to be finalized

White House National Security spokesman John Kirby stated that negotiations in Cairo to achieve a ceasefire in Gaza and reach a hostage agreement are still ongoing, and added that discussions at the working group level will continue in the coming days to address specific issues.

During the online briefing, Kirby refuted the claim that the talks had broken down and stated that the talks were "constructive".

Kirby said, "The talks have actually made progress, and they believe the next reasonable step is for lower level working groups to sit down and finalize these details

Kirby said that one of the issues that the working group needs to address is the exchange of hostages held by Hamas and Palestinian prisoners held by Israel.

He said that the details to be resolved include how many hostages may be exchanged, the identities of the hostages, and the speed at which they may be released.

Hezbollah launched hundreds of rockets and drones into Israel earlier on Sunday, and the Israeli military said it had deployed about 100 fighter jets to strike Lebanon to prevent larger scale attacks,

But Kirby said that the weekend's actions did not affect the talks, saying, "The talks continue to make progress, and our work team still believes that the talks are constructive

Hamas official Taher Al Nono reiterated to Qatar's Al Jazeera on Monday that US statements regarding the current status of ceasefire negotiations are "inconsistent with facts and aimed at supporting the occupying party's position.

Hamas stated in a statement on Sunday that the claim of an imminent agreement is false.

Two Egyptian sources said on Sunday that Israel has reservations about the release of several Palestinian detainees requested by Hamas and has demanded that they leave Gaza once released.

Daily chart of spot gold