ETO Markets Global Pulse: Gold Drops 0.2%, Tests $4,396

Market Review

According to ETO Markets monitoring, on August 31 (Monday), spot gold fell 0.2% to close at USD 4,448.56 per ounce. Prices briefly touched USD 4,396.43 per ounce during the session, the lowest level since August 19. US gold futures for December delivery fell 1.1% to USD 4,481.50.

On September 1 (Tuesday) during early Asian trading, spot gold moved in a narrow range around USD 4,445 per ounce. Markets will focus today on US August ISM manufacturing PMI, US July JOLTS job openings, and US July construction spending.

Global Headlines

Trump Says Iran Strike Possible

Trump said many vessels are still passing through the Strait of Hormuz, with around 30 ships crossing each night on average and large volumes of oil still flowing. On the next phase of the conflict, he said the US “may strike Iran” and described Iran as a “failed state.” He also said US interest rates are too high, while expressing strong respect for FED Chair Warsh.

Iran Vows Stronger Military Response

Iran‘s Armed Forces General Staff said Iran respects the sovereignty of neighboring countries but will not tolerate any aggression and will respond more forcefully. The statement said US forces are still using some regional countries’ territory to attack Iranian military facilities and argued that the US has no option but to withdraw from the region.

Trump Approval Stays At 33%

A new poll showed Trumps approval rating remains at 33%, near the lowest level of his political career. Around 71% of respondents disapproved of his handling of living costs, while only 36% supported the Iran war. With the November midterm elections approaching, 46% of Democratic voters said they are highly motivated to vote, compared with 31% of Republican voters.

Russia US Finance Chiefs Meet

The Russian government said Finance Minister Siluanov met US Treasury Secretary Bessent during the G20 meeting. The two discussed bilateral financial cooperation and cooperation under the G20 framework. It was Siluanovs first in-person appearance at a G20 meeting since the Russia-Ukraine conflict began in 2022.

Bessent Rejects Bond Price Intervention

US Treasury Secretary Bessent said he and FED Chair Warsh share the same view on bonds. He said the government cannot change the equilibrium price of bonds and would not speculate on the FEDs next move. Bessent also said core inflation remains moderate and that he is working with budget director Vought on a fiscal consolidation plan.

ETO Markets Analyst View (Spot Gold)

From a daily-chart perspective, spot gold still maintains a constructive bullish structure. Prices are currently trading above the 100-day moving average at 4,370.48 and above the Bollinger Band 20-day simple moving average at 4,430.23. This suggests that the broader upward trend remains supported.

On the upside, the upper Bollinger Band near 4,723.68 is the next major resistance area. If prices continue to rise, buying momentum may face divergence near that zone. On the downside, 4,430 is the immediate short-term support level, followed by the 100-day moving average near 4,370.48. If the pullback deepens further, the lower Bollinger Band near 4,136.78 may provide a lower support reference.

RSI stands at 54, staying in a neutral-to-bullish zone. This shows that bullish momentum remains in place, but the market is not yet overheated. Markets are currently pricing FED Chair Warshs hawkish remarks, US economic data, USD moves, and US-Iran conflict risks. Gold may continue to trade in a high-level volatile range in the short term.

Disclaimer

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