Fundamental Overview
Gold has been on a sustained bid after the latest Fed’s decision as real yields fell further due to inflation expectations rising faster than nominal yields.
There hasn’t been a bearish catalyst in the meantime to stop the bullish momentum, but watch out for strong US data this and the next week as it could trigger a pullback.
Gold Technical Analysis – Daily Timeframe
On the daily chart, we can see that gold extended the gains following the Fed’s decision as we hadn’t got any bearish catalyst in the meantime.
From a risk management perspective, the buyers will have a much better risk to reward setup around the trendline. The sellers, on the other hand, will want to see the price breaking lower to position for a drop into the 2482 level.
Gold Technical Analysis – 4 hour Timeframe
On the 4 hour chart, we can see that we have a strong support zone around the 2595 level where we can find the confluence of the 50% Fibonacci retracement level and the minor trendline.
If we get a pullback, we can expect the buyers to step in there with a defined risk below the trendline to position for new highs. The sellers, on the other hand, will want to see the price breaking lower to position for a drop into the major trendline.
Gold Technical Analysis – 1 hour Timeframe
On the 1 hour chart, we can see that the price continues to print higher highs and higher lows on this timeframe. If the price falls below the most recent higher low at 2622, we can expect the sellers to pile in for a pullback into the 2595 support. The red lines define the average daily range for today.
Upcoming Catalysts
Today we have the US Consumer Confidence report. On Thursday, we get the latest US Jobless Claims figures. On Friday, we conclude the week with the US PCE.
