Fundamental
Overview
Gold got a bit of a boost
yesterday on renewed tariffs fears as Trump announced 25% tariffs on imported
autos. The threat of higher inflation in the short term coupled with lower
growth is keeping the precious metal supported.
In the bigger picture, as
long as the Fed doesn’t change its reaction function and doesn’t mention rate
hikes, the trend should remain to the upside as real yields will continue to
fall unless we get another strong growth scare.
Gold
Technical Analysis – Daily Timeframe
Gold Daily
On the daily chart, we can
see that gold is consolidating just above the 3000 level. From a risk
management perspective, the buyers will have a better risk to reward setup
around the 2955 level where they will also find the trendline for confluence. The sellers, on the other hand,
will want to see the price breaking below the trendline to target the 2832
level next.
Gold Technical Analysis
– 4 hour Timeframe
Gold 4 hour
On the 4 hour chart, we can
see more clearly the tight range created between the 3000 support and the 3038 resistance. The sellers will likely
step in around the resistance with a defined risk above it to position for a
drop into the major trendline. The buyers, on the other hand, will want to see
the price breaking higher to start targeting a new all-time high.
Gold Technical Analysis
– 1 hour Timeframe
Gold 1 hour
On the 1 hour chart, there’s
not much we can add here as the sellers will look for a rejection around these
levels, while the buyers will look for a break to the upside to open the door
for higher highs. The red lines define the average daily range for today.
Upcoming
Catalysts
Today we get the latest US Jobless Claims
figures, while tomorrow we conclude the week with the US PCE data.