Gold Technical Analysis – Trump’s announcement weighs on the precious metal
. Fundamental Overview . The Fed yesterday kept its usual neutral stance and Fed Chair Powell didn’t offer anything in terms of forward guidance citing elevated uncertainty.
FundamentalOverview
The Fed yesterday kept itsusual neutral stance and Fed Chair Powell didn’t offer anything in terms offorward guidance citing elevated uncertainty. The event didn’t move gold sincethere wasn’t anything new.
What impacted gold negativelywas Trump saying that he would make a big announcement concerning a major tradedeal today. Reports are saying that it will be a framework for a trade dealwith the UK.
In the bigger picture, goldremains in an uptrend as real yields will likely continue to fall amid Fedeasing. But in the short-term positive news on the tariffs front or a hawkishFed could trigger more downside for gold as the market prices outstagflationary fears.
GoldTechnical Analysis – Daily Timeframe
On the daily chart, we cansee that gold rallied back above the 3400 level recently on some negative tariffrelated headlines. Trump’s announcement though triggered some downside onpositive expectations. From a risk management perspective, the buyers will havea better risk to reward setup around the major trendline, while the sellers will look for abreak lower to increase the bearish bets into the 2957 level next.
Gold Technical Analysis– 4 hour Timeframe
On the 4 hour chart, we cansee the price recently broke above the key swing level at 3367 before extendingthe rally above the 3400 level. The price fell back below the 3367 level andfrom a risk management perspective, the sellers will likely want to see apullback into the level to position for further downside. The buyers, on theother hand, will want to see the price rising back above the 3367 level to pilein for a rally into a new all-time high.
Gold Technical Analysis– 1 hour Timeframe
On the 1 hour chart, we cansee that we have a minor downward trendline now defining the current pullback. Ifthe price gets there, we can expect the sellers to lean on the trendline with adefined risk above it to position for a drop into the 3258 level next. Thebuyers, on the other hand, will look for a break higher to increase the bullishbets into new highs. The red lines define the average daily range for today.
UpcomingCatalysts
Today, we get the latest US Jobless Claims figures andTrump announcing the outline for a trade deal with the UK.
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