Gold Technical Analysis | Forexlive

Gold rallied back to the highs as the yellow metal
continues to be supported by the weaker US data and the Fed being done for the
cycle. Yesterday, Gold dropped following the beat in the US Jobless Claims, but the
losses were erased soon after as one beat after a series of misses doesn’t make
a trend. The market is now more likely to price in rate cuts than rate hikes,
which is putting downward pressure on real yields and the US Dollar. For these
reasons, Gold is more likely to reach at least the all-time high in the next
few months.

Gold Technical Analysis –
Daily Timeframe

On the daily chart, we can see that Gold bounced on
the 38.2% Fibonacci retracement level of
the entire rally from the 1810 level and has now reached again the recent highs
around the 2010 level. The buyers should remain in the driver’s seat given the
favourable fundamental conditions, so every break higher is likely to trigger
even more buying pressure with the all-time highs as target.

Gold Technical Analysis – 4
hour Timeframe

On the 4 hour chart, we can see more closely the
current price action. We can expect the buyers to lean on the trendline where
they have the confluence with the
50% Fibonacci retracement level and the red 21 moving average. The
sellers, on the other hand, will want to see the price breaking lower to
invalidate the bullish setup and position for a drop into the recent low around
the 1930 level.

Gold Technical Analysis – 1
hour Timeframe

On the 1 hour chart, we can see more
closely the bullish setup around the 1985 level. If the price continues higher
without pulling back into the trendline, we can expect the sellers to lean on
the 2010 high with a defined risk above it to target a pullback into the
trendline and eventually a break lower. The buyers, on the other hand, will
want to see the price breaking higher to increase the bullish bets into the
all-time high.

Upcoming Events

Today the US will be on holiday for Thanksgiving Day
and therefore the liquidity in the market will be thinner. Tomorrow, we
conclude the week with the US PMIs where weaker data is likely to give Gold a
boost while strong figures should trigger a deeper pullback.