Gold Technical Analysis – All eyes on the US CPI | Forexlive

Fundamental
Overview

Gold remains mostly rangebound
even though we had some bullish price action in the past few days. The focus today
will be on the US CPI release. The NFP put a lid on further gains as
the hawkish repricing in interest rates expectations weighed on the precious
metal. A soft CPI should give gold a boost, while hot data will likely trigger
another selloff.

In the bigger picture, gold
should remain in an uptrend as real yields will likely continue to fall amid
Fed easing. But further hawkish repricing in rate cuts expectations could trigger
corrections in the short term.

Gold
Technical Analysis – Daily Timeframe

On the daily chart, we can
see that gold continued to slowly edging higher after bouncing again on the major
upward trendline. The buyers keep on pushing towards
the 3438 resistance where we will likely find
sellers stepping in to position for another drop into the major trendline.

Gold Technical Analysis
– 4 hour Timeframe

On the 4 hour chart, we can
see that we have a minor support zone around the 3345 level. That’s where we
can expect the buyers to step in with a defined risk below the support to keep
targeting the 3438 resistance. The sellers, on the other hand, will look for a
break lower to position for a drop into the major trendline and target a breakout.

Gold Technical Analysis
– 1 hour Timeframe

On the 1 hour chart, there’s
not much else we can add here as the buyers will have a better setup around the
support, while the sellers will need to break below it to open the door for
more downside. Today, we have the US CPI and it will likely trigger big moves
in the market and the short-term technicals might not matter much. The red
lines define the average daily range for today.

Upcoming
Catalysts

Today we get the US CPI report. Tomorrow,
we the US PPI data. On Thursday, we get the latest US Jobless Claims and Retail
Sales figures. On Friday, we conclude the week with the University of Michigan
Consumer Sentiment survey.

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