Gold Technical Analysis | Forexlive

Last
week, Gold sold off following a hot US CPI report
that made the market to trim further the rate cuts expectations and raised real
yields and the US Dollar. In the following days though, the price started to
bottoming out and even make higher highs and higher lows on the lower
timeframes. Moreover, last Friday, we got a hot US PPI report,
but after a brief dip, Gold started to rally more strongly and eventually broke
through the resistance almost erasing all the week’s losses.

Gold Technical Analysis –
Daily Timeframe

On the daily chart, we can see that Gold broke
through the key 2015 resistance despite
the hot US CPI and PPI reports. This breakout opened the door for a rally into
the next resistance around the 2063 level, so the buyers will look for dip-buying
opportunities on the lower timeframes while the sellers will want to see a
failure to start targeting again the 1973 level.

Gold Technical Analysis – 4
hour Timeframe

On the 4 hour chart, we can see that we had a
strong resistance zone around the 2015 level where we had also the confluence with the
trendline and the
61.8% Fibonacci retracement level.
The buyers piled in on the breakout to target the 2063 resistance. The sellers,
on the other hand, will want to see the price falling back below the resistance
to leave behind a fakeout and position for a drop into the 1973 level.

Gold Technical Analysis – 1
hour Timeframe

On the 1 hour chart, we can see that if we
were to get a pullback from these levels, the buyers will likely step in again
around the resistance now
turned support where they will also find the red 21
moving average for confluence. The sellers, on the other hand, can only wait
for a breakout to the downside before considering new short positions.

Upcoming Events

This week is basically empty on the data front with just
the release of the FOMC Meeting Minutes on Wednesday followed by the US Jobless
Claims and the US PMIs on Thursday. Strong data is likely to weigh on Gold
while weak figures should give it a boost.

See the video below