Gold Technical Analysis – Rangebound price action as we await the first trade deal
. Fundamental Overview . Gold got stuck in a range recently as the market is now waiting for the details of the first trade deal, which is said to be announced this week or the next.
FundamentalOverview
Gold got stuck in a range recentlyas the market is now waiting for the details of the first trade deal, which issaid to be announced this week or the next. We reached an inflection point lastweek following some very positive Trump’s comments and as the stagflationaryrisk kept on being priced out, gold continued to edge lower.
The stagflationary pricinggot gold to such high prices, and as we start to price out that risk, it’snormal to see a correction, especially considering that “long gold” has beenthe most crowded trade.
In the bigger picture, goldremains in an uptrend as real yields will likely continue to fall amid Fedeasing. But in the short-term more positive news on the tariffs front should seemore downside for gold as the market readjusts to new conditions.
GoldTechnical Analysis – Daily Timeframe
On the daily chart, we cansee that gold got stuck in a consolidation around the 3300 level as the marketawaits more info on the first trade deal. From a risk management perspective,the buyers will have a better risk to reward setup around the previous high at3167 to position for further upside, while the sellers will look for a breaklower to increase the bearish bets into the major trendline around the 3100level.
Gold Technical Analysis– 4 hour Timeframe
On the 4 hour chart, we cansee more clearly the range between the 3258 support and the 3367 resistance.The market participants will continue to play the range until we get a breakouton either side.
Gold Technical Analysis– 1 hour Timeframe
On the 1 hour chart,there’s not much else we can add here as the buyers will step in around thesupport and increase the bullish bets on the break of the resistance, while thesellers will pile in around the resistance and increase the bearish bets on thebreak of the support. The red lines define the average daily range for today.
UpcomingCatalysts
Today we have the US Job Openings data andthe US Consumer Confidence report but the focus will be on Bessent’s andLutnick’s remarks. Tomorrow, we have the US ADP, the US Q1 GDP, the US PCE andthe US Employment Cost Index. On Thursday, we get the latest US Jobless Claimsfigures and the US ISM Manufacturing PMI. On Friday, we conclude the week withthe US NFP report. As a reminder, the market is focused on tariff related newsat the moment, so the data is not as market-moving as it used to be in the pastmonths.
Disclaimer: The views in this article are from the original Creator 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.
