Fundamental Analysis - Gold prices experienced significant volatility, closing at approximately $4024.18 per ounce after a sharp recovery from an initial drop to $3915, marking a daily increase of about 2.4%, the largest since the recent peak on October 20 [1] - The Federal Reserve's decision to cut interest rates by 25 basis points to a target range of 3.75%-4.0% has contributed to the renewed interest in gold, as low interest rates and economic uncertainty create a favorable environment for non-yielding assets [1] - The U.S. dollar index rose by 0.38% to 99.51, with a peak of 99.72, the highest since August 1, yet this strength did not suppress safe-haven buying in gold, indicating heightened market sensitivity to uncertainty [1] Trade Developments - President Trump announced a reduction of tariffs on China from 57% to 47% in exchange for increased purchases of U.S. soybeans and enhanced cooperation on rare earth exports, which briefly boosted the stock market before a quick retreat [2] - The overall sentiment remains cautious as the trade agreement appears to be more of a temporary truce rather than a comprehensive resolution, contributing to mixed market reactions [2] Market Sentiment - The combination of the Fed's rate cut, uncertainty surrounding the December meeting, and the lack of substantial progress in U.S.-China trade negotiations has created a complex environment that favors gold while pressuring stock markets [2] - The S&P 500 index fell by 0.99%, and the Nasdaq dropped by 1.57%, reflecting the negative impact of these factors on equity markets [1] Technical Analysis - On the daily chart, gold prices are facing potential short-term pullback risks, with the $3900 level being a critical support point that traders should monitor [4] - The price action has shown a struggle to maintain levels above $4030, indicating a possible consolidation phase around $4010, with traders advised to watch for resistance near $4020/4045 and support at $3985/3920 [4]