Gold Technical Analysis | Forexlive

Gold eventually erased all the losses from the hot US CPI report with
the price continuing to rally amid lack of new bearish catalysts. It looks like
the market is now fine with the three rate cuts priced in for the year, which
is in line with what the Fed expected in the December Dot Plot. Since the Fed
is not expected to restart the tightening cycle, Gold should remain supported
as we head into the easing cycle, but in the short term we might see some
selling if the data comes out too strong as that would make the market to price
out even the remaining three rate cuts.

Gold Technical Analysis –
Daily Timeframe

On the daily chart, we can see that Gold rallied
back above the key 2015 resistance and
extended the rally into the 2030 level. The target for the buyers should be the
next resistance around the 2063 level, but before that they will likely find
the sellers at the trendline.

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 the confluence with the
trendline and the 61.8% Fibonacci retracement level.
The buyers piled in on the breakout and on the retest to target the 2063
resistance. The sellers, on the other hand, will now lean on the 2032 level
which is the high of the US CPI release.

Gold Technical
Analysis – 1 hour Timeframe

On the 1 hour chart, we can see more
closely the recent price action with some consolidation around the 2032 level
as the sellers continue to pile in while the buyers keep on pushing for a
breakout. If we do get a selloff from this level, we can expect the buyers to
step in again around the 2015 support, while the sellers will want to see the
price breaking further below the support to increase the bearish bets into new
lows.

Upcoming Events

Today we will see the latest US Jobless Claims
figures and the US PMIs which will likely be big market movers. Strong data is
likely to weigh on Gold while weak figures should give it a boost.

See the video below