Gold Important Trading Range Signals

Gold Technical Analysis: Gold bulls broke out upwards first, and gold is now oscillating within a range of $4030-$3920. In the short term, this range-bound movement is expected to continue. This week's non-farm payroll data will determine whether a breakout occurs and a one-sided trend emerges. However, if the non-farm payroll data fails to break through key short-term support and resistance levels, the oscillation will likely continue, and this time, it is expected to last for a considerable period.

Short-term Data Impact: The non-farm payroll data fuels expectations of a December rate cut by the Federal Reserve. Other factors include easing trade tensions and the US government shutdown. Therefore, the probability of gold experiencing a significant surge in the short term is low. Even if it breaks through the rebound high of 4046, the upside potential is expected to be limited.