Gold Technical Analysis – Renewed tariffs fears boost prices
. Fundamental Overview . Gold found some support from renewed tariffs fears and managed to pull back into the 2900 level. Real yields continue to fall as nominal yields recently fell much faster th...
FundamentalOverview
Gold found some supportfrom renewed tariffs fears and managed to pull back into the 2900 level. Realyields continue to fall as nominal yields recently fell much faster thaninflation expectations. The culprit is likely Trump’s tariffs policy as it keepsinflation expectations high while also depressing growth expectations.
The next NFP and CPIreports will be key for the market. Hot data, especially on the inflation side,will likely weigh on gold prices as the market might pare back its expectationsfor rate cuts that recently saw an increase to 75 bps of easing by year-endcompared to 44 bps just last week.
GoldTechnical Analysis – Daily Timeframe
On the daily chart, we cansee that gold bounced around the 2832 level last Friday and extended thepullback into the 2900 level on renewed tariffs fears. There’s not much we canglean from this timeframe, 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 price broke above the downward trendline that was defining thepullback into the 2790 level. The buyers piled in on the break to position forthe rally back into the all-time highs. The sellers, on the other hand, willlikely step in around the all-time highs to target again the 2790 level.
Gold Technical Analysis– 1 hour Timeframe
On the 1 hour chart, we cansee that we had a bit of a consolidation around the 2893 level but the price isnow breaking above the minor resistancewith the buyers increasing their bullish bets into the all-time highs. Thesellers will want to see the price breaking below the upward trendline to regainconviction and position for a drop into the 2790 level next. The red lines define the average daily range for today
UpcomingCatalysts
Today the market participants will be onthe lookout for tariffs headlines as they go into effect for Canada, Mexico andChina. Tomorrow, we have the US ADP and the US ISM Services PMI. On Thursday,we get the latest US Jobless Claims figures. On Friday, we conclude the weekwith the US NFP report.
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