Fundamental
Overview
Gold got stuck in a bit of
a consolidation this week after the Monday’s rally. Some renewed trade tensions
gave the precious metal a boost in the final part of last week but since then things
have calmed down.
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 could
weigh on gold, so watch out for the economic data, especially the NFP and CPI
reports.
Gold
Technical Analysis – Daily Timeframe
Gold Daily
On the daily chart, we can
see that gold broke above the downward trendline and opened the door for a move into
new highs. The buyers piled in on the break to target the 3438 level next. The
sellers, on the other hand, might want to wait for the price to come into the
3438 level to position for a drop back into the major upward trendline.
Gold Technical Analysis
– 4 hour Timeframe
Gold 4 hour
On the 4 hour chart, we can
see that we have a minor upward trendline defining the bullish momentum. From a
risk management perspective, if we get a pullback, the buyers will have a
better risk to reward setup around the trendline to position for a rally into
the 3438 level. The sellers, on the other hand, will want to see the price
breaking lower to start targeting the 3200 level next.
Gold Technical Analysis
– 1 hour Timeframe
Gold 1 hour
On the 1 hour chart, we can
see that we have a nice support zone around the 3330 level. That’s where the
buyers stepped in on the pullback to position for a rally into the 3438 level
next. If the price continue to range and we get another pullback into the
support, we can expect the buyers to pile in again, while the sellers will look
for a break lower to extend the drop into the 3200 level next. The red lines
define the average daily range for today.
Upcoming
Catalysts
Today, we get the latest US Jobless Claims figures. Tomorrow,
we conclude the week with the US NFP report.
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