Fundamental Overview

Gold remains mostly rangebound even though we had some bullish price action in the past few days. The focus today will be on the US CPI release. The NFP put a lid on further gains as the hawkish repricing in interest rates expectations weighed on the precious metal. A soft CPI should give gold a boost, while hot data will likely trigger another selloff.

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.

Gold Technical Analysis – Daily Timeframe

Gold Technical Analysis
Gold Daily

On the daily chart, we can see that gold continued to slowly edging higher after bouncing again on the major upward trendline. The buyers keep on pushing towards the 3438 resistance where we will likely find sellers stepping in to position for another drop into the major trendline.

Gold Technical Analysis – 4 hour Timeframe

Gold Technical Analysis
Gold 4 hour

On the 4 hour chart, we can see that we have a minor support zone around the 3345 level. That’s where we can expect the buyers to step in with a defined risk below the support to keep targeting the 3438 resistance. The sellers, on the other hand, will look for a break lower to position for a drop into the major trendline and target a breakout.

Gold Technical Analysis – 1 hour Timeframe

Gold Technical Analysis
Gold 1 hour

On the 1 hour chart, there’s not much else we can add here as the buyers will have a better setup around the support, while the sellers will need to break below it to open the door for more downside. Today, we have the US CPI and it will likely trigger big moves in the market and the short-term technicals might not matter much. The red lines define the average daily range for today.

Upcoming Catalysts

Today we get the US CPI report. Tomorrow, we the US PPI data. On Thursday, we get the latest US Jobless Claims and Retail Sales figures. On Friday, we conclude the week with the University of Michigan Consumer Sentiment survey.

Watch the video below

Source: Forex Live