FundamentalOverview

Gold got stuck in a bit ofa consolidation this week after the Monday’s rally. Some renewed trade tensionsgave the precious metal a boost in the final part of last week but since then thingshave calmed down.

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, especially the NFP and CPIreports.

GoldTechnical Analysis – Daily Timeframe

On the daily chart, we cansee that gold broke above the downward trendline and opened the door for a move intonew highs. The buyers piled in on the break to target the 3438 level next. Thesellers, on the other hand, might want to wait for the price to come into the3438 level to position for a drop back into the major upward trendline.

Gold Technical Analysis– 4 hour Timeframe

On the 4 hour chart, we cansee that we have a minor upward trendline defining the bullish momentum. From arisk management perspective, if we get a pullback, the buyers will have abetter risk to reward setup around the trendline to position for a rally intothe 3438 level. The sellers, on the other hand, will want to see the pricebreaking lower to start targeting the 3200 level next.

Gold Technical Analysis– 1 hour Timeframe

On the 1 hour chart, we cansee that we have a nice support zone around the 3330 level. That’s where thebuyers stepped in on the pullback to position for a rally into the 3438 levelnext. If the price continue to range and we get another pullback into thesupport, we can expect the buyers to pile in again, while the sellers will lookfor a break lower to extend the drop into the 3200 level next. The red linesdefine the average daily range for today.

UpcomingCatalysts

Today, we get the latest US Jobless Claims figures. Tomorrow,we conclude the week with the US NFP report.

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