Fundamental
Overview
Gold broke out of the
consolidation and rallied into an important resistance around the 2700 level. In
the bigger picture, the trend remains bullish amid the Fed’s easing cycle, but
the short-term corrections will likely be triggered by the repricing in rate
cuts expectations.
Today might be one of those
days as we have the US CPI report. Higher than expected figures will likely
trigger another selloff, while lower than expected data should keep the
precious metal supported into new highs.
Gold
Technical Analysis – Daily Timeframe
Gold Daily
On the daily chart, we can
see that gold broke out of the consolidation around the major trendline and rallied into the 2700 level. The
buyers will keep on targeting a new all-time high and pile in at every technical
break, while the sellers will look for a break below the 2600 support to gain
control and position for a drop into the next major trendline around the 2400
level.
Gold Technical Analysis – 4 hour Timeframe
Gold 4 hour
On the 4 hour chart, we can
see more clearly the break out of the consolidation and the rally into the resistance
around the 2709 level. This is where we can expect the sellers to step in with
a defined risk above the resistance to position for a drop back into the 2600
support. The buyers, on the other hand, will want to see the price breaking higher
to increase the bullish bets into the all-time high.
Gold Technical Analysis
– 1 hour Timeframe
Gold 1 hour
On the 1 hour chart, we can
see that we have an upward trendline defining the current bullish momentum. The
buyers will likely continue to lean on it to keep targeting new highs, while
the sellers will look for a break lower to position for the drop into the
support.
We have the US CPI report
today and the reaction will likely be big, so it might be better to wait for
the release before picking a direction. The red lines define the average daily range for today.
Upcoming
Catalysts
Today we have the US CPI report. Tomorrow, we get the latest US Jobless
Claims figures and the US PPI.