Fundamental Overview
Gold remains mostly rangebound as the market continues to wait for a catalyst to pick a direction. This week the main events are the US-China trade talks in London and the release of the US CPI report.
On the trade talks side, the expected positive outcome will likely keep a lid on further gains. On the CPI front, higher than expected data could lead to more downside in the short term for the precious metal as the market would expect less rate cuts this year.
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 the repricing in rate cuts expectations could weigh on gold, so watch out for the US CPI report tomorrow.
Gold Technical Analysis – Daily Timeframe
On the daily chart, we can see that gold pulled back to retest the broken downward trendline where the buyers stepped in to position for a rally into the 3438 level. The sellers will want to see the price breaking lower to extend the drop into the major upward trendline around the 3200 level.
Gold Technical Analysis – 4 hour Timeframe
On the 4 hour chart, we can see that we have a minor resistance zone around the 3337 level where the price got rejected from several times in the past days. That’s where we can expect the sellers to step in with a defined risk above the resistance to position for a drop into the major upward trendline. The buyers, on the other hand, will look for a break higher to pile in for a rally into the 3438 level next.
Gold Technical Analysis – 1 hour Timeframe
On the 1 hour chart, there’s not much else we can add here as the sellers will look for a rejection from the resistance, while the buyers will target a break to the upside. The red lines define the average daily range for today.
Upcoming Catalysts
Today, we have another round of US-China trade talks in London. Tomorrow, we have the US CPI. On Thursday, we get the latest US Jobless Claims figures and US PPI. On Friday, we conclude the week with the University of Michigan Consumer Sentiment report.
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This article was written by Giuseppe Dellamotta at www.forexlive.com. Read More Details
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