FundamentalOverview

Gold continues to pull backamid the positive global growth expectations following the much better thanexpected US-China news on Monday. These expectations are also leading to a morehawkish repricing in interest rates and the pricing out of stagflationary risk.

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 willlikely keep a lid on gold upside.

GoldTechnical Analysis – Daily Timeframe

On the daily chart, we cansee that gold continues to pull back amid the positive sentiment on the tradefront. From a risk management perspective, the buyers will have a better riskto 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 fell below the key support around the 3258 level and after a retest,continued lower. The sellers will keep on pushing towards the major trendline,while the buyers will want to see the price rising back above the 3258 level tostart targeting the 3367 level next.

Gold Technical Analysis– 1 hour Timeframe

On the 1 hour chart, we cansee that we have a minor downward trendline defining the bearish momentum. Thesellers will likely continue to lean on the trendline to keep pushing into newlows, while the buyers will look for a break higher to pile in for a rally backinto the 3367 level. The red lines define the average daily range for today.

UpcomingCatalysts

Today, we have Fed’s Waller speaking. Tomorrow, we get thelatest US Jobless Claims figures, the US PPI and the US Retail Sales data. OnFriday, we conclude the week with the University of Michigan Consumer Sentimentreport.

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