Gold Technical Analysis – Renewed trade tensions lift the market
. Fundamental Overview . In the final part of last week, the trade tensions returned as Trump accused China of violating their agreement.
FundamentalOverview
In the final part of lastweek, the trade tensions returned as Trump accused China of violating theiragreement. We also saw a general step up in Trump’s hawkish rhetoric on tariffswith the President announcing an increase to 50% on steel tariffs startingtomorrow. Maybe being called TACO made him mad.
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 trendlineand opened the door for a move into new highs. The buyers piled in on the breakto target the 3438 level next. The sellers, on the other hand, might want to waitfor the price to come into the 3438 level to position for a drop back into themajor upward trendline.
Gold Technical Analysis– 4 hour Timeframe
On the 4 hour chart, we cansee more clearly the breakout and the stronger bullish momentum. From a riskmanagement perspective, if we get a pullback, the buyers will have a betterrisk to reward setup around the minor upward trendline to position for a rallyinto the 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 supportzone around the 3330 level. If the price gets there, we can expect the buyersto step in with a defined risk below the support to position for a rally intonew highs. The sellers, on the other hand, will look for a break lower toextend the pullback into the minor upward trendline. The red lines define the average daily range for today.
UpcomingCatalysts
Today, we get the US Job Openings data. Tomorrow, we havethe US ADP and the US ISM Services PMI. On Thursday, we get the latest USJobless Claims figures. On Friday, we conclude the week with the US NFP report.
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