Gold Technical Analysis – The rangebound price action continues

Fundamental Overview

Gold continues to lean on the major trendline with the market remaining overall rangebound. The lower than expected Core CPI and Core PPI figures didn’t give the expected boost, which might be a signal that the focus could be on something else.

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

On the daily chart, we can see that gold pulled back once again into the major upward trendline. This is where we can expect the buyers to step in with a defined risk below the trendline to position for a rally into the 3438 resistance. The sellers, on the other hand, will look for a break lower to increase the bearish bets into the 3120 level next.

Gold Technical Analysis – 4 hour Timeframe

On the 4 hour chart, we can see that we have another minor trendline by connecting the recent swing lows. We could see a move into it before a bounce, so the buyers should be aware of that. The sellers will likely need to break below the minor trendline to confirm a move into new lows.

Gold Technical Analysis – 1 hour Timeframe

On the 1 hour chart, there’s not much else we can add here as the buyers will look for dip-buying opportunities around the trendlines, while the sellers will target breakouts. The red lines define the average daily range for today.

Upcoming Catalysts

Today we get the latest US Jobless Claims and Retail Sales figures. Tomorrow, we conclude the week with the University of Michigan Consumer Sentiment survey.

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