Gold Trade Setup – 3rd Feb

Gold is entering today’s session with momentum firmly back on the bid, reinforcing its role as the market’s preferred hedge when policy uncertainty rises and the rates narrative becomes less predictable. With the US data calendar disrupted by the partial government shutdown, traders are leaning more heavily on proxy indicators (such as ADP and ISM Services) alongside real-time headline flow, creating a backdrop where expectations around the Fed path can reprice quickly. In this environment, Gold tends to respond most directly to the interplay between the US dollar and real yields, while broader risk sentiment can either amplify moves (when hedging demand dominates) or introduce short-term whipsaws (when equity strength suppresses defensive demand). Against that backdrop, our focus is an A+ (3/3) setup that keeps fundamentals, technical structure, and sentiment aligned, with clear execution levels, tight invalidation, and defined upside objectives. Gold Trade Setup: Pair / Asset Bias & Entries Stop / Invalidation Targets Why A+ (fundamentals, technicals, sentiment) Price Action Driver Near-term catalysts (UK time) GOLD LONG – Buy on pullback 4,835 – 4,850 (preferred) or momentum add on reclaim/hold >4,900 Below 4,805 (breakdown); hard invalidation <4,780 T1: 4,925  T2: 4,995 – 5,050 Fundamentals: gold is reacting to policy uncertainty & rates narrative volatility (Fed leadership speculation & shutdown/data fog). Technicals: strong impulse day (your tape shows +4.5%), trend continuation is A+ if it holds above the pullback base rather than giving it all back. Sentiment: “risk” is two-way (risk-on hurts gold), but current tape shows gold bid even as equities bounce signals hedging demand/vol bid. USD (DXY) & real yields (US10Y) & vol regime Tuesday 3rd Feb: US shutdown headlines (any resolution/extension can whipsaw USD/yields), Wednesday 4th Feb: 13:15: ADP Employment Change 15:00: ISM Services Chart by TradingView – Gold Trade Setup – 3rd Feb Conclusion: For Gold, the edge comes from trading the plan, not the noise. This week’s volatility is likely to be driven by a combination of US dollar direction, real-yield impulses, and shutdown-related headlines, all of which can produce fast extensions and equally fast retracements. That makes defined invalidation non-negotiable: if the market breaks the stated structure, the setup is no longer A+ and we step aside. If the bid holds and follow-through continues, the outlined targets provide a structured path to scale profits while keeping exposure to a broader trend continuation. Above all, maintain discipline around levels, avoid chasing late moves, and let the market come to the entry, protecting downside while staying positioned for the higher-probability continuation. This analysis is for informational purposes only and does not constitute investment advice. Trading involves risk; manage exposure accordingly. For similar Gold Trade Setups please visit our Commodities Trade Ideas page. Please visit our Disclaimer page. Disclaimer Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. TerraBullMarkets.com does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets or any financial instrument involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of TerraBullMarkets.com nor any of its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page. TerraBullMarkets.com and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. TerraBullMarkets.com and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted. TerraBullMarkets...