FUNDAMENTAL OVERVIEW Gold spiked to the upside yesterday following the softer than expected US PCE data but eventually gave back all the gains and extended the losses in the US session close. There was no catalyst for the bearish move but frankly speaking, there wasn’t even one for the bullish one as the PCE data surprised to the downside mainly due to BEA's annual methodological update and revisions. In fact, the BEA changed how some prices are constructed. There was enough uncertainty around these changes that economists had warned beforehand that the revisions could materially lower reported core PCE. All in all, it wasn’t a game changer.In the short-term, the price action might remain mostly rangebound as the lower probabilities for an October hike and the ongoing US-Iran negotiations could limit the downside in gold. Nonetheless, a prolonged stalemate or some negative news on the geopolitical front could add bearish pressure. Tomorrow, we have also the US NFP report and while better than expected data might not move the needle much, a very strong report could trigger another hawkish repricing and weigh on the precious metal. A surprisingly soft reading, on the other hand, could give gold a boost in the short-term as traders will likely scale back some of the aggressive rate hike bets. GOLD TECHNICAL ANALYSIS – DAILY TIMEFRAMEOn the daily chart, we can see gold(CFD contract) has been pulling back from Monday’s lows on renewed optimism around a US-Iran deal. The natural target for the sellers should be the 3,885 level where we will also find a major upward trendline. If the price gets there, we can expect the buyers to step in with a defined risk below the upward trendline to position for a rally into new record highs. The sellers, on the other hand, will look for a break to extend the drop into the 3,500 level next.GOLD TECHNICAL ANALYSIS – 4 HOUR TIMEFRAMEOn the 4 hour chart, we have a downward trendline defining the bearish structure. If the price pulls back into the trendline, we can expect the sellers to lean on it, with a defined risk above it, to keep targeting the 3,885 level. The buyers, on the other hand, will want to see the price breaking higher to position for a correction into the 4,500 level next.GOLD TECHNICAL ANALYSIS – 1 HOUR TIMEFRAMEOn the 1 hour chart, we can see the price broke below the counter-trendline yesterday and extended the losses as more sellers piled in. The price bounced from the 4,140 level which will now act as minor support. If the price break below the support, we can expect the sellers to increase the bearish bets to target the 3,885 level next. The buyers, on the other hand, will likely step in around the support with a defined risk below it to extend the pullback into the major downward trendline. The red lines define the average daily range for today.UPCOMING CATALYSTSTodaywe get the US ISM Manufacturing PMI and the latest US Jobless Claims figures. Tomorrow, we conclude the week with the US NFP report. The focus, though, will remain on US-Iran developments. This article was written by Giuseppe Dellamotta at investinglive.com.