Fundamental
Overview
Gold has been on a
sustained rally ever since the last Fed’s decision as real yields fell further
due to inflation expectations rising faster than nominal yields.
More recently, real yields
pulled back a bit, while gold continued to print new highs. The new driver
could be China as this week they started to implement strong easing measures.
Overall, there hasn’t been
any bearish catalyst since the last FOMC decision, so the bullish momentum
remained intact. Watch out for strong US
data next week though as it could trigger a correction.
Gold
Technical Analysis – Daily Timeframe
Gold Daily
On the daily chart, we can
see that gold extended the gains into new highs. From a risk management
perspective, the buyers will have a much better risk to reward setup around the
trendline. The sellers, on the other hand,
will want to see the price breaking lower to position for a drop into the 2482 support.
Gold Technical Analysis
– 4 hour Timeframe
Gold 4 hour
On the 4 hour chart, we can
see that we have another trendline defining the current bullish momentum on
this timeframe. If we get a pullback, we
can expect the buyers to lean on the trendline to position for new highs. The
sellers, on the other hand, will want to see the price breaking lower to
position for a drop into the major trendline.
Gold Technical Analysis
– 1 hour Timeframe
Gold 1 hour
On the 1 hour chart, we can
see that we have yet another minor trendline defining the bullish momentum on
this timeframe. The buyers will likely keep on leaning on it to position for
new highs, while the sellers will want to see the price breaking lower to
position for a drop into the next trendline. The red lines define the average daily range for today.
Upcoming
Catalysts
Today we get the latest US Jobless Claims figures, while tomorrow we conclude
the week with the US PCE report.
