Gold Technical Analysis – Renewed tariffs fears boost the precious metal

Fundamental Overview

Gold got a bit of a boost yesterday on renewed tariffs fears as Trump announced 25% tariffs on imported autos. The threat of higher inflation in the short term coupled with lower growth is keeping the precious metal supported.

In the bigger picture, as long as the Fed doesn’t change its reaction function and doesn’t mention rate hikes, the trend should remain to the upside as real yields will continue to fall unless we get another strong growth scare.

Gold Technical Analysis – Daily Timeframe

On the daily chart, we can see that gold is consolidating just above the 3000 level. From a risk management perspective, the buyers will have a better risk to reward setup around the 2955 level where they will also find the trendline for confluence. The sellers, on the other hand, will want to see the price breaking below the trendline to target the 2832 level next.

Gold Technical Analysis – 4 hour Timeframe

On the 4 hour chart, we can see more clearly the tight range created between the 3000 support and the 3038 resistance. The sellers will likely step in around the resistance with a defined risk above it to position for a drop into the major trendline. The buyers, on the other hand, will want to see the price breaking higher to start targeting a new all-time high.

Gold Technical Analysis – 1 hour Timeframe

On the 1 hour chart, there’s not much we can add here as the sellers will look for a rejection around these levels, while the buyers will look for a break to the upside to open the door for higher highs. The red lines define the average daily range for today.

Upcoming Catalysts

Today we get the latest US Jobless Claims figures, while tomorrow we conclude the week with the US PCE data.

Watch the video below