FUNDAMENTAL
OVERVIEW
Gold has recouped all the
losses experienced on Wednesday when Trump said to reporters at the NATO summit
that the Memorandum of Understanding with Iran was over for him. Later on, Trump
walked back on his comments and said that negotiations would continue, claiming
that Iran called him to make a deal.
That was enough for traders
to price out the geopolitical risk premium and go back to previous levels.
Barring another US-Iran escalation, the price action should remain rangebound
into the US CPI report due on Tuesday.
The US CPI should have a major influence on interest rate expectations given
the Fed’s focus on inflation. If the data surprises to the upside, we will
likely see another selloff in gold on a hawkish repricing. Conversely, lower than
expected figures should trigger a relief rally on peak inflation narrative.
GOLD TECHNICAL ANALYSIS – DAILY TIMEFRAME
On the daily chart, we can
see that gold is still consolidating near the major downward trendline. 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 new lows. The buyers, on the
other hand, will want to see the price breaking higher to increase the bullish
bets into the next trendline around the 4,500 level.
GOLD TECHNICAL ANALYSIS – 4
HOUR TIMEFRAME
On the 4 hour chart, we have
a minor trendline defining the recent pullback. The sellers will likely
continue to lean on the trendline with a defined risk above it to keep pushing
into new lows. The buyers, on the other hand, will want to see the price
breaking higher to pile in for a move into the major trendline targeting a
breakout.
GOLD TECHNICAL ANALYSIS – 1
HOUR TIMEFRAME
On the 1 hour chart, we have
a support zone around the 4,090 level where the price got rejected from several
times in the past days. The buyers will likely step in around the support with
a defined risk below it to position for a rally into the major downward
trendline. The sellers, on the other hand, will look for a break lower to
increase the bearish bets into new lows. The red lines define the average daily range for today.
This article was written by flfeaa2662d774455a8d50fa77b791ed5f at investinglive.com.