FundamentalOverview

Gold continued to print newall-time highs day after day this week as the fall in real yields and later theUS dollar gave the precious metal a tailwind to push into new highs. The mostrecent rise though has been quite parabolic and that’s often followed by adeeper pullback.

We have the US NFP reporttomorrow and we might see some profit taking ahead of the release. The labourmarket data throughout January has been strong, so we might get a strong NFPwhich could weigh on gold in the short term and offer a dip-buying opportunityat better levels.

GoldTechnical Analysis – Daily Timeframe

On the daily chart, we cansee that gold extended the rally into new all-time highs yesterday. From a riskmanagement perspective, the buyers will have a better risk to reward setup aroundthe 2790 level. The sellers, on the other hand, will want to see the pricebreaking below that level to increase the bearish bets into the 2600 levelnext.

Gold Technical Analysis– 4 hour Timeframe

On the 4 hour chart, we cansee that the price has been following well the upward trendline but more recently themomentum picked up strongly turning it into a parabolic rise. We can often seedeeper pullbacks after such price action.

The buyers will likely leanon the trendline again with the 2790 level for confluence,while the sellers will look for a break lower to gain more conviction andincrease the bearish bets into new lows.

Gold Technical Analysis– 1 hour Timeframe

On the 1 hour chart, we cansee that we broke below a minor upward trendline that was defining the bullishmomentum on this timeframe. The sellers will likely pile in here to positionfor the pullback into the 2790 level. The buyers, on the other hand, will wantto see the price breaking above the downward counter-trendline to position fornew highs. The red lines define the average daily range for today.

UpcomingCatalysts

Today we get the latest US Jobless Claimsfigures, while tomorrow we conclude the week with the US NFP report.

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