Fundamental Overview
Gold is slowly edging towards the key 2721 resistance as the softer than expected US inflation data this week gave the necessary support to push into new highs.
Following the slightly lower than expected US Core CPI yesterday, we saw a big fall in real yields which should support gold for further upside as inflation hysteria and the repricing in rate cuts expectations might have peaked.
Gold Technical Analysis – Daily Timeframe
On the daily chart, we can see that gold continues to trade inside the range between the 2600 support and the 2721 resistance. The price is now getting closer to the resistance thanks to the soft US inflation figures this week. That’s where we can expect the sellers to step in to position for a drop back into the support. The buyers, on the other hand, will look for a break higher to increase the bullish bets into a new all-time high.
Gold Technical Analysis – 4 hour Timeframe
On the 4 hour chart, we can see that the price eventually bounced from the middle of the range around the 2660 level as the buyers piled in to target the resistance and the US data gave the boost to push the price to the upside. There’s not much else we can glean from this timeframe as the sellers will wait for the price to come into the resistance, while the buyers will look for a break higher.
Gold Technical Analysis – 1 hour Timeframe
On the 1 hour chart, we can see that we have now a minor upward trendline defining the current bullish momentum on this timeframe. The buyers will likely continue to lean on the trendline to keep pushing into new highs, while the sellers will look for a break lower to position for a drop back into the support. The red lines define the average daily range for today.
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Today, we get the latest US Jobless Claims figures and the US Retail Sales data.
