Fundamental Overview
It looks more and more likely that gold reached an inflection point this week. The price continues to edge lower as more and more positive news on the trade front filter through. Trump delivered some key comments late Tuesday where he not only sounded much less hawkish on China but also made clear that he had no intention to replace Fed Chair Powell.
Yesterday, we got a report saying that the first trade deal is very near and it will likely be with India. Moreover, the first deal will be the baseline for other deals, so the market will build future expectations from the first deal. This morning, we got a positive news from China as the government is said to be considering suspending the 125% tariff on some US imports.
The stagflationary pricing got gold to such high prices, and as we start to price out that risk, it’s normal to see a correction, especially considering that “long gold” has been the most crowded trade.
In the bigger picture, gold remains in an uptrend as real yields will likely continue to fall amid Fed easing. But in the short-term more positive news on the tariffs front should see more downside for gold as the market readjusts to new conditions.
Gold Technical Analysis – Daily Timeframe
On the daily chart, we can see that gold continues to edge lower as the market prices out some of the stagflationary risks. From a risk management perspective, the buyers will have a better risk to reward setup around the previous high at 3167 to position for further upside, while the sellers will look for a break lower to increase the bearish bets into the major trendline around the 3100 level.
Gold Technical Analysis – 4 hour Timeframe
On the 4 hour chart, we can see that the price is testing again the swing low around the 3284 level. This is where the buyers stepped in with a defined risk below the level to position for a rally into new all-time highs. The sellers, on the other hand, will want to see the price breaking lower to increase the bearish bets into the 3167 level next.
Gold Technical Analysis – 1 hour Timeframe
On the 1 hour chart, there’s not much else we can add here as the buyers will target a bounce into the 3367 resistance, while the sellers will look for a break below the 3285 level. The red lines define the average daily range for today.
Upcoming Catalysts
Today we have just the final University of Michigan Consumer Sentiment report. As a reminder though, the market is focused on tariff related news at the moment, so the data is not as market-moving as it used to be in the past months.
Watch the video below
This article was written by Giuseppe Dellamotta at www.forexlive.com. Read More Details
Finally We wish PressBee provided you with enough information of ( Gold Technical Analysis – Positive tariff news keeps weighing on the precious metal )
Also on site :