Gold Technical Analysis – Renewed trade tensions lift the market | Forexlive

Fundamental
Overview

In the final part of last
week, the trade tensions returned as Trump accused China of violating their
agreement. We also saw a general step up in Trump’s hawkish rhetoric on tariffs
with the President announcing an increase to 50% on steel tariffs starting
tomorrow. Maybe being called TACO made him mad.

In the bigger picture, gold
remains in an uptrend as real yields will likely continue to fall amid Fed
easing. But in the short-term the repricing in rate cuts expectations could
weigh on gold, so watch out for the economic data, especially the NFP and CPI
reports.

Gold
Technical Analysis – Daily Timeframe

On the daily chart, we can
see that gold broke above the downward trendline
and opened the door for a move into new highs. The buyers piled in on the break
to target the 3438 level next. The sellers, on the other hand, might want to wait
for the price to come into the 3438 level to position for a drop back into the
major upward trendline.

Gold Technical Analysis
– 4 hour Timeframe

On the 4 hour chart, we can
see more clearly the breakout and the stronger bullish momentum. From a risk
management perspective, if we get a pullback, the buyers will have a better
risk to reward setup around the minor upward trendline to position for a rally
into the 3438 level. The sellers, on the other hand, will want to see the price
breaking lower to start targeting the 3200 level next.

Gold Technical Analysis
– 1 hour Timeframe

On the 1 hour chart, we can
see that we have a nice support
zone around the 3330 level. If the price gets there, we can expect the buyers
to step in with a defined risk below the support to position for a rally into
new highs. The sellers, on the other hand, will look for a break lower to
extend the pullback into the minor upward trendline. The red lines define the average daily range for today.

Upcoming
Catalysts

Today, we get the US Job Openings data. Tomorrow, we have
the US ADP and the US ISM Services PMI. On Thursday, we get the latest US
Jobless Claims figures. On Friday, we conclude the week with the US NFP report.

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