Gold Technical Analysis – Traders await new catalysts to pick a direction | Forexlive

Fundamental
Overview

Gold remains rangebound as
traders await new catalysts for the next direction. Since the NFP, the path of least resistance has been to the
downside as the hawkish repricing in interest rates expectations weighed on the
precious metal.

In the bigger picture, gold
should remain in an uptrend as real yields will likely continue to fall amid
Fed easing. But further hawkish repricing in rate cuts expectations could trigger
corrections in the short term.

The next key event for the
market will be the US CPI report next week. Soft figures should give gold a
boost, while hot data will likely trigger another selloff.

Gold
Technical Analysis – Daily Timeframe

On the daily chart, we can
see that gold eventually dropped into the major upward trendline again. This is where we can
expect the buyers to step in with a defined risk below the trendline to
position for a rally into a new all-time high. The sellers, on the other hand,
will look for a break lower to pile in for a drop into the 3120 level next.

Gold Technical Analysis – 4 hour Timeframe

On the 4 hour chart, we can
see that the price is already probing below the trendline but the lack of
momentum might be suggesting that it’s not a real breakout. Nonetheless, the
sellers will likely continue to pile in around these levels with a defined risk
above the trendline to keep pushing into the 3120 level next. The buyers, on
the other hand, will want to see the price rising back above the broken
trendline to gain more conviction and target new highs.

Gold Technical Analysis
– 1 hour Timeframe

On the 1 hour chart, we can
see that the momentum has waned around the trendline. From a risk management
perspective, the sellers will have a better risk to reward setup around the minor
downward trendline to position for the break below the major trendline next.
The buyers, on the other hand, will look for a break above the minor trendline
to increase the bullish bets into new highs. The red lines define the average daily range for today.

Upcoming
Catalysts

Tomorrow we get the latest US Jobless Claims
figures but keep an eye also on tariff headlines as Trump continues to roll out
his tariff letters.