Gold Holds in a Tight Range Below $4,100 as Upside Prospects Remain Limited

Fundamental Overview

Gold (XAU/USD) is trading in a narrow band below $4,100 on Monday, showing little intraday direction as fresh US Dollar strength weighs on the metal. The Greenback is supported by cautious remarks from Federal Reserve officials, which have tempered expectations of an additional rate cut in the near term.

However, lingering concerns over weakening US economic momentum—following the record government shutdown—are keeping the door open for potential Fed easing, preventing a deeper USD rally. A mild risk-off tone across markets is also helping Gold hold above Friday’s one-week low.

With investors awaiting Wednesday’s FOMC Minutes and Thursday’s delayed US Nonfarm Payrolls, traders remain cautious, leaving Gold confined within a tight range for now.

Gold Technical Analysis – Daily Chart

Technical Overview

• Gold remains within an upward trading channel.
• Price is trading below the 20 & 100 SMAs, indicating short-term pressure.
• RSI stays in the buying zone, while Stochastic reflects a neutral bias.
• Immediate Resistance: 4160.00
• Immediate Support: 4015.00

Trading Outlook

Gold’s attempt to extend its rebound was short-lived, with price facing a sharp rejection and forming a strong bearish candle. The metal is now approaching a key demand zone. If this support holds, Gold could stabilize and attempt another bounce. A break below the zone may trigger deeper downside.

Trade Suggestion:
Limit Buy: 4035.23
Take Profit: 4144.40
Stop Loss: 3982.58

Frequently Asked Questions (FAQ)

Q1: Why is Gold struggling to break above $4,100?
Renewed US Dollar strength and cautious Fed commentary are limiting upward momentum.

Q2: What events could move Gold this week?
The FOMC Minutes and delayed US NFP data are likely to drive volatility.

Q3: Is risk sentiment supporting Gold?
Yes—a mild risk-off tone is helping Gold remain above recent lows.

Q4: What technical levels should traders watch?
Key levels include $4,160 resistance and $4,015 support.

Q5: Could Gold resume its uptrend?
Gold could recover if it holds above the key demand zone and US data weakens, pressuring the Dollar.

Disclaimer

This report is for informational purposes only and should not be considered financial or investment advice. Trading involves significant risk, and market conditions may change rapidly. Always perform independent analysis or consult a licensed financial advisor before making trading decisions.