On Friday, prices consolidated after entering overbought conditions, while the price pullback held above $4,282, leading to another price rebound. For today, if it holds above $4,364, the short-term consolidation is viewed as complete, and prices will enter a rebound phase with resistance levels at $4,449–$4,511.

Investment strategy: Take profit if prices fail to pass $4,449–$4,511; if passed above $4,551, delay selling until the next resistance level while raising the Trailing Stop to lock in profits.

For buying entries, wait for a pullback and risk opening long positions if the price stays above $4,396–$4,364 (Stop loss at $4,364).

Key Factors

On Friday, gold closed down $45.1 after stronger-than-expected U.S. labor market data. August Nonfarm Payrolls increased by 162,000 jobs, significantly surpassing market expectations of 56,000.

This prompted the market to raise the probability of a Fed interest rate hike at its September meeting to around 65%, up from 55% prior to the release, pressing gold prices down by more than 2% intraday.

However, gold recovered from its lows after President Trump called on the Fed to cut interest rates, warning that the U.S. might halt trade with deficit-running countries if the Fed fails to act. This triggered renewed safe-haven buying into gold.