Fundamental Overview
Gold lost some momentum recently following better than expected US data. Real yields rose and started to put some pressure on gold.
This week we have the US CPI report on Thursday, and we might see some hedging into a potentially higher than expected Core measure given the commentary in the latest US PMIs.
Gold Technical Analysis – Daily Timeframe
On the daily chart, we can see that gold got stuck in a consolidation around the all-time highs following better than expected US data. From a risk management perspective, the buyers will have a better risk to reward setup around the trendline. The sellers, on the other hand, will want to see the price breaking below the trendline to position for a drop into new lows.
Gold Technical Analysis – 4 hour Timeframe
On the 4 hour chart, we can see more clearly the rangebound price action near the all-time high. The sellers will want to see the price breaking the support to increase the bearish bets into the trendline, while the buyers will look for a break above the resistance to pile in for new highs.
Gold Technical Analysis – 1 hour Timeframe
On the 1 hour chart, there’s not much else we can add here as the market participants will either wait for a technical breakout or a catalyst. The red lines define the average daily range for today.
Upcoming Catalysts
This week the calendar is a bit empty on the data front. The main events are all scheduled for the latter part of the week. On Thursday, we have the US CPI and the US Jobless Claims. On Friday, we conclude with the US PPI and the University of Michigan Consumer Sentiment report.
