Article by: ETO Markets

Gold prices (XAU/USD) were weak during the Asian trading session, but remained above the lower boundary of the short-term trading range. Following strong US jobs data, investors trimmed their expectations for the Federal Reserve to cut interest rates by 50 basis points in November, which put some pressure on non-yielding gold prices. In addition, Treasury yields rose above 4%, further boosting the dollar. Nonetheless, as the market expects the Fed to adjust policy more gently, this has provided some support for gold prices.

Meanwhile, the market's focus on the Fed's policy path also saw the dollar pull back slightly after hitting a seven-week high. Investors await the release of minutes from the Fed's September meeting, as well as U.S. consumer and producer price indices on Thursday and Friday, for further policy clues. The data will provide fresh momentum for the dollar and gold prices.

From a technical point of view, gold is currently near the lower boundary of the short-term trading range, with the $…-$… area remaining a key support. If this area is effectively broken, it could trigger technical selling, dragging gold below $… and further testing the $… support area. If it continues to the downside, the next support level could be near $…-$…, which could eventually move toward the psychological level of $….

On the contrary, gold's oscillators on the daily chart remain in positive territory, showing a certain bullish bias. The upper resistance is in the $…-$… area, followed by the $…-$… area, the all-time high set in September. If gold is able to break above the key $… level, it will be seen as a new bullish signal that could extend the upward trend of several months. Overall, as long as gold remains above the $… support, the bullish potential remains apparent.