Gold Technical Analysis – Awaiting new catalysts
. Fundamental Overview . Gold got stuck in a tight consolidation near the all-time highs as the market might be waiting for new catalysts for the next direction.
FundamentalOverview
Gold got stuck in a tightconsolidation near the all-time highs as the market might be waiting for new catalystsfor the next direction. For now, the market continues to move upwards byinertia amid a lack of bearish news for the precious metal.
Real yields remain in abearish trend which is supportive for the gold market. We will likely need astrong growth scare to see some downside in gold or a hawkish Fed to trigger abigger correction. For now, the path of least resistance remains to the upside.
On Friday, we got thelong-term inflation expectations in the Consumer Sentiment survey jumping to anew 30-year high. That might put the Fed in an uncomfortable position. The nextNFP and CPI reports will be key for the markets.
GoldTechnical Analysis – Daily Timeframe
On the daily chart, we cansee that gold is currently consolidating near the all-time highs. From a riskmanagement perspective, the buyers will have a better risk to reward setuparound the 2790 level, while the sellers will look for a break below the levelto start targeting the 2600 level next.
Gold Technical Analysis– 4 hour Timeframe
On the 4 hour chart, we cansee that we have the major upward trendline defining the bullishmomentum. If we get a pullback into the trendline, we can expect the buyers tolean on it to position for a rally into a new all-time high. The sellers, onthe other hand, will want to see the price breaking lower to increase thebearish bets into new lows.
Gold Technical Analysis– 1 hour Timeframe
On the 1 hour chart, we cansee that we have a tight range around the all-time highs. The buyers willlikely keep on pushing into new highs as long as the price stays above the 2920support, while the sellers will look for a break below the support to target adeeper pullback into the major trendline. The red lines define the average daily range for today
UpcomingCatalysts
Tomorrow we have the US Consumer Confidencereport. On Thursday, we get the latest US Jobless Claims figures, while onFriday we conclude the week with the US PCE data.
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