Gold Technical Analysis – Watch out for the key economic releases this week
Fundamental Overview . Gold has been on a sustained rally ever since the last Fed’s decision as real yields fell further due to inflation expectations rising faster than nominal yields.
FundamentalOverview
Gold has been on asustained rally ever since the last Fed’s decision as real yields fell furtherdue to inflation expectations rising faster than nominal yields.
More recently, real yieldspulled back a bit, while gold continued to print new highs. The new drivercould be China as last week they started to implement strong easing measures.
The market is now lookingforward to better global growth although that could come at the cost of inflationstaying above the target for longer or even reaccelerating.
Overall, there hasn’t beenany bearish catalyst since the last FOMC decision, so the bullish momentumremained intact. Watch out for the US data this week as strong data couldtrigger a bigger correction, while weak figures might lead to new highs.
GoldTechnical Analysis – Daily Timeframe
On the daily chart, we cansee that gold pulled back a bit from the all-time highs. From a risk managementperspective, the buyers will have a much better risk to reward setup around thetrendline. The sellers, on the other hand,will want to see the price breaking lower to position for a drop into new lows.
Gold Technical Analysis– 4 hour Timeframe
On the 4 hour chart, we cansee that we have another trendline defining the current bullish momentum onthis timeframe. If we get a pullback, we can expect the buyers to lean on thetrendline to position for new highs. The sellers, on the other hand, will wantto see the price breaking lower to position for a drop into the majortrendline.
Gold Technical Analysis– 1 hour Timeframe
On the 1 hour chart, we cansee that the price recently broke below the upward trendline that was definingthe bullish momentum on this timeframe and the sellers piled in for a drop intothe next trendline.
We have a downwardtrendline now defining the pullback. The sellers will likely lean on it toposition for new lows, while the buyers will look for a break higher to pile infor new highs. The red lines define the average daily range for today.
UpcomingCatalysts
Today we have Fed Chair Powell speaking. Tomorrow, we get the US ISMManufacturing PMI and the US Job Openings data. On Wednesday, we have the USADP report. On Thursday, we get the latest US Jobless Claims figures and the USISM Services PMI. Finally, on Friday, we conclude the week with the US NFPreport.
Disclaimer: The views in this article are from the original author and do not represent the views or position of Hawk Insight. The content of the article is for reference, communication and learning only, and does not constitute investment advice. If it involves copyright issues, please contact us for deletion.
