Why Didn't Hitler order an immediate attack on Moscow in August 1941?

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There were by that time very important military factors that literally obliterated any politic or symbolic considerations:

  • First, Soviet resistance on Smolensk: while the Germans did manage to encircle some Soviet troops there, the Soviets had massed largely more to stop fight from the inside as well as the outside the German forces. And they fought efficiently: German tank divisions were exhausted by the fierce fight, lacking infantry and artillery support. Just after the end of the encirclement, Soviets led counterstrikes that failed but continued to harass the Germans. So it is wrong to think that the road to Moscow was open. It was closed, full of Soviet soldiers
  • Second, the opportunity of Kiev: Mocow was so tightly protected that the Germans identified the possible failure in the South, at Roslav. Some Germans still wanted to use it to go back North and re-attack on Moscow direction, but it soon appeared easier to continue South
  • Third, the situation in UKraine was bad: the Germans had heavy problems with their advance, so the help from the Center Group would very useful. That is what ultimately devided the advance on Kiev

This is the answer. Now I would like to highlight in your question the wrong premises:

  • instead of pressing this advantage : there was no specific advantage after the battle of Smolensk As I said before, this was a fierce battle with heavy German losses as well.
  • but the south was not of great concern : initial German plans about the attack of USSR did not focus especially on Moscow, Leningrad or Ukraine: in fact, the Germans had no clear priorities and that is why the ultimate plan was a three-prongs attack. South, Ukraine was very important: this was food resources, then industrial resources (Donbass), ultimately oil resources (Caucasus). The Germans needed them so their nearly stalled advance in Ukraine could not be let aside.

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