FundamentalOverview

Gold pulled back from thehighs yesterday as the recent rise in real yields and the US dollar eventually weighedon the market. The focus has now switched to the US CPI report due later today.Higher than expected data should provide a deeper pullback as real yields willlikely rise further. Conversely, a soft report might give gold another boost topush into a new all-time high.

GoldTechnical Analysis – Daily Timeframe

On the daily chart, we cansee that gold extended the rally into yet another all-time high recently. Froma risk management perspective, the buyers will have a better risk to rewardsetup around the 2790 level, while the sellers will look for a break below thelevel to start targeting the 2600 level next.

Gold Technical Analysis– 4 hour Timeframe

On the 4 hour chart, we cansee that the momentum became even stronger recently as the price got furtheraway from the trendline. If we get a deeper pullback, wecan expect the buyers to lean on the trendline again with a defined risk belowit to position for a rally into new highs. The sellers, on the other hand, willwant to see the price breaking lower to increase the bearish bets into the 2600level next.

Gold Technical Analysis– 1 hour Timeframe

On the 1 hour chart, we cansee that we have a strong supportzone around the 2882 level where the price got rejected from several times inthe past weeks. This is where we can expect the buyers to step in with adefined risk below the support to position for a rally into new highs.

The sellers, on the otherhand, will want to see the price breaking lower to increase the bearish betsinto the major trendline next. The red lines define the average daily range for today

UpcomingCatalysts

Today, we have the US CPI report. Tomorrow, we get the USPPI and the latest US Jobless Claims figures. On Friday, we conclude the week withthe US Retail Sales data.

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