Gold trading strategy on August 12: Pay attention to the July PPI data, and it is recommended to continue to do more on dips

On Thursday (August 12), the spot gold is almost stable. The short-term gold price continues to be bullish. The PPI in the evening may also support the gold price. Investors are advised to continue to buy more on dips.

Daily level: Gold prices soared by more than 1% on Wednesday, as the CPI in the United States showed a slowdown in inflation, which eased market concerns.

There are still important July PPI data released during the day. In view of the mild CPI performance, the PPI is expected to be roughly the same as the previous value, which may also provide upward momentum to the gold bulls.

On the technical chart, the K line forms a "Venus" pattern, which is a typical reversal signal, and the price of gold may continue its upward trend in the day. Investors are advised to do more on dips.

The initial resistance above focuses on the 61.8% retracement level of 1767.91, and further resistance focuses on the 10-day moving average at 1777.99 and the 50% retracement level at 1796.25.

The initial support below is concerned with the 76.4% retracement level of 1732.84, and further support is concerned with the low of 1719.33 on March 18 and the 1700 mark.

Resistance level：1767.91；1777.99；1796.25
Support：1732.84；1719.33；1700.00

Short-term operation advice: do more on dips.