Gold Technical Analysis – Trump’s announcement weighs on the precious metal | Forexlive

Fundamental
Overview

The Fed yesterday kept its
usual neutral stance and Fed Chair Powell didn’t offer anything in terms of
forward guidance citing elevated uncertainty. The event didn’t move gold since
there wasn’t anything new.

What impacted gold negatively
was Trump saying that he would make a big announcement concerning a major trade
deal today. Reports are saying that it will be a framework for a trade deal
with the UK.

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 positive news on the tariffs front or a hawkish
Fed could trigger more downside for gold as the market prices out
stagflationary fears.

Gold
Technical Analysis – Daily Timeframe

On the daily chart, we can
see that gold rallied back above the 3400 level recently on some negative tariff
related headlines. Trump’s announcement though triggered some downside on
positive expectations. From a risk management perspective, the buyers will have
a better risk to reward setup around the major trendline, while the sellers will look for a
break lower to increase the bearish bets into the 2957 level next.

Gold Technical Analysis
– 4 hour Timeframe

On the 4 hour chart, we can
see the price recently broke above the key swing level at 3367 before extending
the rally above the 3400 level. The price fell back below the 3367 level and
from a risk management perspective, the sellers will likely want to see a
pullback into the level to position for further downside. The buyers, on the
other hand, will want to see the price rising back above the 3367 level to pile
in for a rally into a new all-time high.

Gold Technical Analysis
– 1 hour Timeframe

On the 1 hour chart, we can
see that we have a minor downward trendline now defining the current pullback. If
the price gets there, we can expect the sellers to lean on the trendline with a
defined risk above it to position for a drop into the 3258 level next. The
buyers, on the other hand, will look for a break higher to increase the bullish
bets into new highs. The red lines define the average daily range for today.

Upcoming
Catalysts

Today, we get the latest US Jobless Claims figures and
Trump announcing the outline for a trade deal with the UK.

Watch the video below