Watching gold closely this morning, it’s the same familiar choppy rhythm—bulls and bears refusing to give in, with prices swinging back and forth in a key range. That rally up to $4,260 last Friday barely had a chance to warm up before a deep pullback hit, and yesterday gold spent the whole day grinding sideways around the $4,200 mark. To put it plainly, everyone’s waiting for Thursday’s Fed rate decision; no one wants to bet on a direction right now.

The current situation is pretty clear: gold is in a wide-ranging consolidation. On the upside, the $4,220–$4,230 area is a clear resistance zone; it was tested several times yesterday but couldn’t break through. If it tries again today, it’ll still be a tough nut to crack. On the downside, $4,185–$4,175 is key support for the current range—holding that level is crucial for any rebound. Fundamentally, things are simple: rate cut expectations are propping up gold and preventing a big drop, but rising US Treasury yields are putting the brakes on any rally. Bulls and bears are at a stalemate, and it’s unlikely we’ll see a strong one-sided move in the short term.

So how to trade this? Here’s my approach:

If you want to go long, don’t chase the rally. Wait for the price to pull back to the $4,185–$4,190 zone, confirm it holds above $4,185, then try a small position. Set your stop loss below $4,170 to protect yourself, and aim for a target around $4,210–$4,220. If you hit resistance, take some profits off the table—don’t expect to hit a home run in one go.

If you’re looking to short, wait for a bounce. If the price climbs to $4,220–$4,225, consider entering, especially if it can’t break $4,230. Set a wider stop loss above $4,240, and target $4,200–$4,190. Be sure to take profits near support—don’t stubbornly hold on and fight the market.

Two key points to emphasize: First, position sizing! Never risk more than 2% of your account on a single trade. In a choppy market, heavy positions and all-in bets are the quickest way to get whipsawed out. Second, avoid trading during data releases; if there are scattered economic data drops in the morning, the market could act erratically. Either wait until after the data comes out or widen your stop loss by $2–$3 to give yourself some buffer.

One last thing: until Thursday’s Fed decision, the choppy market is likely to continue. Don’t try to guess the top or bottom or predict direction—just follow the technical levels and play short-term swings. If you stick to this strategy today, you should be able to capture some range profits. Of course, if the market does break out—say, dropping below $4,175 or breaking above $4,230—be ready to adapt your strategy and go with the new trend. The market is always right; staying flexible is the key to survival.