Tuesday, August 18th, during the early Asian trading session, gold prices softened, with spot gold briefly breaking below the 4400.00 USD/oz mark, last quoted at 4399.97 USD/oz, down 0.37% on the day.

According to the latest market reports, the potential 50% tariff increase by Trump could take effect on Wednesday, though market expectations lean towards a higher probability of a last-minute retreat. Due to weaker-than-expected US employment, inflation, and retail data, market participants have further reduced expectations for Federal Reserve rate hikes, while a softer US dollar is underpinning gold's strength.

The pullback in US Treasury yields from higher levels is also favorable for precious metals. However, after consecutive gains, gold's upward momentum has shown signs of slowing as it approaches the upper resistance of its trading range, warranting caution against potential profit-taking in the short term.

On the daily chart, gold currently maintains a clearly bullish short-term structure, with prices trading above the 100-day simple moving average and the middle band of the Bollinger Bands. Meanwhile, the 14-day Relative Strength Index stands at approximately 65.37, nearing overbought territory, indicating strong upward momentum.

On the 4-hour chart, the structure remains bullish, with candlesticks transitioning from previous weakness back to a neutral-to-bullish stance. The MACD indicator is converging and poised to form a golden cross, suggesting caution as prices may push higher.

Overall, the recommended approach for tonight's gold trading is to lean towards buying on pullbacks.

Gold Trading Strategy: Long Entry: Consider buying in the 4385-4383 range, with a stop loss at 4363 and a target near 4428. Short Entry: Consider selling in the 4430-4432 range, with a stop loss at 4451 and a target near 4392.

Disclaimer: This content is for reference only and does not constitute investment advice. Investors should operate at their own risk.