Gold Technical Analysis – Positive NFP report triggers a pullback | Forexlive

Fundamental
Overview

Gold has been on a steady
rise last week since bouncing on a major trendline as the market kept on
increasing the dovish bets on the Fed. That rally reversed after the US
NFP came out better than expected and triggered a more hawkish repricing in
interest rate expectations.

In the bigger picture, gold
remains in an uptrend as real yields will likely continue to fall amid Fed
easing and just a hawkish repricing in rate cuts expectations could trigger
corrections in the short term.

Gold
Technical Analysis – Daily Timeframe

On the daily chart, we can
see that gold is now pulling back into the major upward trendline as the positive US NFP reduced
the chances of a third rate cut by year-end. The buyers will likely step in
around the trendline with a defined risk below it 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 more clearly that the NFP marked the top in the recent rally and traders
now await new catalysts or better levels to position themselves. There’s not
much else we can glean from this timeframe as the buyers will likely step in
around the major upward trendline, while the sellers will look for a break
lower.

Gold Technical Analysis
– 1 hour Timeframe

On the 1 hour chart, we can
see that we have a minor downward trendline defining the current pullback. The
sellers will likely continue to lean on that trendline to keep pushing into new
lows, while the buyers will look for a break higher to pile in for a rally into
the 3438 level next. The red lines define the average daily range for today.

Upcoming
Catalysts

The only notable
events this week are Trump’s letters on tariffs and
trade deals, and the US Jobless Claims figures on Thursday.

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