Gold prices have experienced significant volatility this August, with XAU/USD recently facing rejection at the key resistance level of $3,400. The metal is now testing support around $3,380 amid shifting market dynamics. Despite persistent attempts by bulls to push prices higher, gold remains confined within a well-established range between $3,250 and $3,450, a pattern that has persisted for nearly three months.

Several fundamental factors have influenced gold’s movement. Recent geopolitical events and concerns about the Federal Reserve’s policy direction sparked renewed interest in safe-haven assets. Uncertainty regarding US economic data, highlighted by surprising labor market reports, has added momentum to gold’s rally. Although expectations of further rate cuts have ignited risk appetite in equities, gold continues to attract investors seeking stability, especially as the US dollar and major currencies remain under pressure.

In the short term, traders are watching the $3,380 support level closely. A confirmed break below this threshold could see gold returning towards the lower end of its multi-week range, while another rebound may open a path to retest the $3,400 resistance. Technical indicators suggest gold is trading with a positive bias, but broader sentiment appears cautious, with many waiting for a decisive move beyond the current consolidation zone.

Looking ahead, medium-term forecasts indicate that gold could still push toward $3,500 by year-end if inflation concerns persist and central banks maintain dovish stances. However, with supply and demand dynamics fluctuating, and macroeconomic indicators in flux, gold investors should anticipate further volatility in the months to come.

As always, monitoring both global headlines and technical support/resistance levels will be crucial for anyone trading or investing in gold at these elevated prices.