The Purpose of the "Trading Range"

There were actually several purposes served:

To encourage the attitude that Gold had lost its former use as a "hedge" against price inflation and political and economic crises. This was done very successfully. The last time that Gold reacted to political events was the lead up to the Gulf War way back in late 1990.
To encourage the attitude that (price) inflation was "dead".

To foster the attitude that all the financial crises of late 1994 to early 1996 were under control. After all, the Gold price was not reacting to them.

To give added credence to the much-ballyhooed (especially in the 1996 election campaign), claim that U.S. debt was under control and that the U.S. was smoothly working its way towards a balanced budget.

The most important purpose by far.To re-reinforce the notion - still held by millions of people throughout the world - that there was still a "link" between Gold and the U.S. Dollar.