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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
Gold Daily
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
Gold 4 hour
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
Gold 1 hour
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.