Fundamental Overview
Gold remains rangebound as the
focus turns to the US CPI report due next Tuesday. The NFP put a lid on further gains as
the hawkish repricing in interest rates expectations weighed on the precious
metal. A soft CPI should give gold a boost, while hot data will likely trigger
another selloff.
In the bigger picture, gold
should remain in an uptrend as real yields will likely continue to fall amid
Fed easing. But further hawkish repricing in rate cuts expectations could trigger
corrections in the short term.
Gold
Technical Analysis – Daily Timeframe
On the daily chart, we can
see that gold eventually bounced around the major upward trendline once again. The buyers
stepped in with a defined risk below the trendline to position for a rally back
into the 3438 resistance.
The sellers might want to wait for the price to come into the resistance or
break below the major trendline to pile in for new lows with better setups.
Gold Technical Analysis
– 4 hour Timeframe
On the 4 hour chart, we can
see that the price broke above the minor downward trendline that was defining
the pullback into the major trendline. The buyers piled in on the break
increase the bullish bets into the 3438 resistance. The sellers, on the other hand,
don’t have much where to lean onto here so it would be better to wait for a
break below the major trendline before considering new shorts.
Gold Technical Analysis
– 1 hour Timeframe
On the 1 hour chart, we can
see that we have a minor upward trendline defining the bullish momentum on this
timeframe. The buyers will likely continue to lean on the trendline to keep
pushing into new highs, while the sellers will look for a break lower to target
a deeper pullback into the 3310 level next. The red lines define the average daily range for today.
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This article was written by Giuseppe Dellamotta at www.forexlive.com.