Fundamental Overview
Yesterday, we got the US CPI report and, although as expected it didn’t have the same impact as it used to, the core m/m figure surprised to the upside. The shelter component re-accelerated and that’s something to keep an eye on given the imminent rate cut cycle as we might get a reacceleration in the economic activity.
The data didn’t give the gold bulls a strong reason to break out of the range and therefore, we will likely keep on bouncing around until the FOMC decision next week unless the US Jobless Claims today spike above the 260K level.
Gold Technical Analysis – Daily Timeframe
On the daily chart, we can see that gold remains stuck in the range between the 2480 support and the 2530 resistance. We will need a strong catalyst to break out of the range and if it doesn’t come this week, it will definitely come next week with the FOMC decision.
Gold Technical Analysis – 4 hour Timeframe
On the 4 hour chart, we can see more clearly the range between the 2480 support and the 2530 resistance. The market participants keep on “playing the range” by buying at support and selling at resistance waiting for a breakout on either side.
Gold Technical Analysis – 1 hour Timeframe
On the 1 hour chart, we can see that we have an interesting zone around the 2505 level where the price reacted to several times in the past couple of weeks. This might act as kind of barometer for the sentiment with the price staying above being more bullish and staying below being more bearish. The red lines define the average daily range for today.
Upcoming Catalysts
Today we get the latest US Jobless Claims figures and the US PPI data. Tomorrow, we conclude the week with the University of Michigan Consumer Sentiment report.
