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Gold range-bound near $4,000 as Fed caution and strong US Dollar cap upside

Gold (XAU/USD) kicks off the week on a cautious footing, oscillating within its established $3,900-$4,050 range as traders weigh an evolving macroeconomic backdrop. At the time of writing, XAU/USD is trading around $4,010 after briefly slipping to $3,962 earlier in the Asian session.

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💡 DMK Insight

Gold’s stuck in a tight range, and here’s why that matters: traders are on edge as macroeconomic signals shift. With XAU/USD hovering around $4,010, the recent dip to $3,962 suggests a tug-of-war between bullish and bearish sentiment. The $3,900-$4,050 range has become a battleground, and a breakout in either direction could trigger significant volatility. Keep an eye on economic indicators like inflation data and interest rate decisions, as these will likely dictate gold’s next move. If inflation remains stubbornly high, we might see a push towards the upper end of the range, but any signs of easing could send prices tumbling. On the flip side, if gold breaks below $3,900, it could signal a deeper correction, potentially dragging related assets like silver down with it. Watch for trading volume and momentum indicators to gauge market sentiment. The next few days are crucial—traders should be ready to act as we approach key economic releases.

📮 Takeaway

Monitor the $3,900 support and $4,050 resistance in XAU/USD; a breakout could lead to significant price movement this week.

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