Fundamental
Overview
Gold eventually extended
the gains in the past couple of days supported by lower real yields and US
dollar. There was no fresh catalyst for the moves as the market has been likely
driven by repositioning after the lower than expected US inflation data last
week.
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 interest rates expectations could trigger
corrections in the short term.
Gold
Technical Analysis – Daily Timeframe
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On the daily chart, we can
see that gold eventually extended the gains into the 3438 resistance as buyers kept the bullish
momentum going. This is where we can expect the sellers to step in with a
defined risk above the resistance to position for a drop back into the major trendline.
The buyers, on the other hand, will look for a breakout to increase the bullish
bets into a new all-time high.
Gold Technical Analysis
– 4 hour Timeframe
On the 4 hour chart, we can
see that after breaking above the minor resistance zone around the 3377 level,
the buyers increased the bullish bets and extended the gains into the 3438
level. Again, we can expect the sellers to step in around these levels to
position for a pullback into the major trendline, while the buyers will target
a breakout and extend the rally further.
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 it to keep pushing into new
highs, while the sellers will look for a break lower to increase the bearish
bets into the major trendline. The red lines define the average daily range for today.
Upcoming
Catalysts
Tomorrow we get the latest US Jobless Claims
figures and the flash US PMIs.
Watch the video below
This article was written by Giuseppe Dellamotta at investinglive.com.
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