FundamentalOverview

Gold has been underpressure for a few weeks as the market priced out the stagflationaryexpectations and repriced the rate cut bets. The market is now seeing around 58bps of easing for the Fed by year-end compared to like 120 bps at the peak ofthe fears in April.

In the bigger picture, goldremains in an uptrend as real yields will likely continue to fall amid Fedeasing. But in the short-term the repricing in rate cuts expectations couldweigh on gold, so watch out for the economic data and Fed comments.

GoldTechnical Analysis – Daily Timeframe

On the daily chart, we cansee that gold eventually pulled all the way back to the major trendline where the buyers stepped inwith a defined risk below the trendline to position for a rally into a newall-time high. The sellers will need to see the price breaking lower to starttargeting the 2960 level next.

Gold Technical Analysis– 4 hour Timeframe

On the 4 hour chart, we cansee that we had quite strong bounce around the trendline as the buyers kept pushinginto the key 3260 level. The sellers stepped in around the resistanceto position for a drop back into the trendline, while the buyers will need tosee the price breaking above the 3260 level to extend the rally into the downwardtrendline around the 3360 level.

Gold Technical Analysis– 1 hour Timeframe

On the 1 hour chart, we cansee that we have a minor support zone around the 3200 level. This is where wecan expect the buyers to step in with a defined risk below the support toposition for a break above the 3260 level. The sellers, on the other hand, willlook for a break lower to increase the bearish bets into the lows. The redlines define the average daily range for today.

UpcomingCatalysts

Today, we conclude the week with the University of MichiganConsumer Sentiment report.