Fundamental
Overview
Gold continues to pull back
amid the positive global growth expectations following the much better than
expected US-China news on Monday. These expectations are also leading to a more
hawkish repricing in interest rates and the pricing out of stagflationary risk.
In the bigger picture, gold
remains in an uptrend as real yields will likely continue to fall amid Fed
easing. But in the short-term the repricing in rate cuts expectations will
likely keep a lid on gold upside.
Gold
Technical Analysis – Daily Timeframe
On the daily chart, we can
see that gold continues to pull back amid the positive sentiment on the trade
front. From a risk management perspective, the buyers will have a better risk
to reward setup around the major trendline, while the sellers will look for a
break lower to increase the bearish bets into the 2957 level next.
Gold Technical Analysis
– 4 hour Timeframe
On the 4 hour chart, we can
see the price fell below the key support around the 3258 level and after a retest,
continued lower. The sellers will keep on pushing towards the major trendline,
while the buyers will want to see the price rising back above the 3258 level to
start targeting the 3367 level next.
Gold Technical Analysis
– 1 hour Timeframe
On the 1 hour chart, we can
see that we have a minor downward trendline defining the bearish momentum. The
sellers will likely continue to lean on the trendline to keep pushing into new
lows, while the buyers will look for a break higher to pile in for a rally back
into the 3367 level. The red lines define the average daily range for today.
Upcoming
Catalysts
Today, we have Fed’s Waller speaking. Tomorrow, we get the
latest US Jobless Claims figures, the US PPI and the US Retail Sales data. On
Friday, we conclude the week with the University of Michigan Consumer Sentiment
report.
Watch the video below
This article was written by Giuseppe Dellamotta at www.forexlive.com.