FundamentalOverview

Gold has been on asustained rally ever since the last Fed’s decision as real yields fell furtherdue to inflation expectations rising faster than nominal yields.

More recently, real yieldspulled back a bit, while gold continued to print new highs. The new drivercould be China as this week they started to implement strong easing measures.

Overall, there hasn’t beenany bearish catalyst since the last FOMC decision, so the bullish momentumremained intact. Watch out for strong USdata next week though as it could trigger a correction.

GoldTechnical Analysis – Daily Timeframe

On the daily chart, we cansee that gold extended the gains into new highs. From a risk managementperspective, the buyers will have a much better risk to reward setup around thetrendline. The sellers, on the other hand,will want to see the price breaking lower to position for a drop into the 2482 support.

Gold Technical Analysis– 4 hour Timeframe

On the 4 hour chart, we cansee that we have another trendline defining the current bullish momentum onthis timeframe. If we get a pullback, wecan expect the buyers to lean on the trendline to position for new highs. Thesellers, on the other hand, will want to see the price breaking lower toposition for a drop into the major trendline.

Gold Technical Analysis– 1 hour Timeframe

On the 1 hour chart, we cansee that we have yet another minor trendline defining the bullish momentum onthis timeframe. The buyers will likely keep on leaning on it to position fornew highs, while the sellers will want to see the price breaking lower toposition for a drop into the next trendline. The red lines define the average daily range for today.

UpcomingCatalysts

Today we get the latest US Jobless Claims figures, while tomorrow we concludethe week with the US PCE report.

See the video below