The negative non-farm payroll data further increased expectations of a Fed rate hike in December. The subsequent sharp drop is preparation for a surge; if even gold becomes worthless in the future, what will remain a safe haven? Prices are bound to rise! The previous large bullish candlestick had the momentum to break through the long-term downtrend line. My personal prediction is that after finding support within the trading range, it will rise again, eventually forming a head and shoulders bottom pattern on the daily chart. A break above the neckline at 4200 will open up upward potential on the weekly chart. XAU 4200-4220 is the first strong resistance level. Pay close attention to the support area around 4020-4000 for potential long positions. This level is the upper edge of the original trading range and a support/resistance level, with a target around $4150.