FundamentalOverview

As the stock markets aroundthe world bottomed (at least for now), the pressure on gold finally waned andthe precious metal rallied strongly into a new all-time high.

Gold generally feels thepressure from aggressive stock market selloffs as it tightens financialconditions and there’s a popular narrative that gold positions get liquidatedto cover margins.

Not sure about the latter,but as the stock market bottomed, gold finally started to rise again and eventuallyextended into new all-time highs.

In the bigger picture, goldremains in an uptrend as real yields will likely continue to fall amid fiscalstimuli and rising inflation expectations. The risks include another aggressivestock market selloff and a hawkish Fed.

GoldTechnical Analysis – Daily Timeframe

On the daily chart, we cansee that Gold rallied into a new all-time high as the pressure from the stockmarket waned. There’s not much we can glean from this timeframe as we aretrading in uncharted territory, so we need to zoom in to see some more details.

Gold Technical Analysis– 4 hour Timeframe

On the 4 hour chart, we cansee that the previous all-time high at 3168 could now act as support.That’s where the buyers will likely step in with a defined risk below the levelto position for further upside. The sellers, on the other hand, will want tosee the price breaking lower to pile in and target a pullback into the 3057level next.

Gold Technical Analysis– 1 hour Timeframe

On the 1 hour chart, we cansee that we also have an upward trendline adding confluence to the supportlevel. Again, the buyers will likely step in there to keep pushing into new highs,while the sellers will look for a break lower to target the 3057 level next. Thered lines define the average daily range for today.

UpcomingCatalysts

Today we conclude the week with the US PPIand the University of Michigan Consumer Sentiment survey, but the focus willremain on tariffs negotiations and China.

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