Fundamental
Overview
Yesterday, gold reached a new all-time high as it continues to be supported
by the steady fall in real yields. The breakout of the three-month range might
now attract momentum players and take us to even higher highs.
As of now, it looks like gold have limited downside but lots of upside as
inflation abates slowly while risks to the growth picture increase the longer
the Fed keeps policy restrictive. In the short-term, strong US data might weigh
a bit on the market, but in the long-term weak data is likely to trigger bigger
upside moves.
Gold
Technical Analysis – Daily Timeframe
On the daily chart, we can
see that gold yesterday broke through the 2430 resistance and extended the rally into a new
all-time high. This breakout of the three-month long range should see the
buyers piling in with more conviction. The sellers, on the other hand, will
want to see the price falling back below the 2430 level to position for a drop
back into the 2277 support.
Gold Technical Analysis
– 4 hour Timeframe
On the 4 hour chart, we can
see that we now have a nice support zone around the 2440 level where we can
find the confluence of the previous all-time high and
the trendline. This is where we can expect the
buyers to pile in to position for the continuation of the uptrend. The sellers,
on the other hand, will want to see the price breaking below the trendline and
the 2430 level to position for a drop into the 2277 support.
Gold Technical Analysis
– 1 hour Timeframe
On the 1 hour chart, we can
see that it’s now about timing the entry for the buyers as the price might just
keep going without providing decent pullbacks. The trendline looks like the best
place in terms of risk-reward, but more aggressive buyers might just pile in
around these levels with a bigger stop below the 2430 level as this should be a
long term trade. The red lines define the average daily range for today.
Upcoming
Catalysts
Today we have Fed’s Waller speaking while tomorrow we conclude with the
latest US Jobless Claims figures.
See the video below
This article was written by Giuseppe Dellamotta at www.forexlive.com.
