Gold Technical Analysis – The focus switches to jobless claims and CPI

Fundamental Overview

Gold continues to edge higher since the NFP-induced rally on Friday. The dovish repricing in interest rates expectations gave the precious metal a boost and now we are just going up by inertia until the next catalyst.

The next key catalysts will be the US Jobless Claims tomorrow and the US CPI next week. The NFP was softer than expected but it wasn’t that bad as one might think by just looking at the reaction in the markets.

Jobless claims could alleviate concerns around the labour market, while the CPI could bring more uncertainty on the market pricing in case we get hot data.

In the bigger picture, gold should remain in an uptrend as real yields will likely continue to fall amid Fed easing. But hawkish repricing in interest rates expectations will likely keep on triggering corrections in the short term.

Gold Technical Analysis – Daily Timeframe

On the daily chart, we can see that gold continues to edge higher towards the key resistance around the 3,438 level after the NFP-induced bounce. If we get there, we can expect the sellers to step in around the resistance once again with a defined risk above the level to position for a drop back into the 3,245 support. The buyers, on the other hand, will look for a break higher to increase the bullish bets into a new all-time high.

Gold Technical Analysis – 4 hour Timeframe

On the 4 hour chart, we can see that we have a bit of a consolidation between the 3,349 and 3,385 level. The buyers will want to see the price breaking higher to extend the rally into the key resistance, while the sellers will look for a break lower to pile in for a move back into the 3,245 support.

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 a break above the 3,385 level, while the sellers will likely continue to step in around these levels to target a break below the 3,349 level and open the door for new lows. The red lines define the average daily range for today.

Upcoming Catalysts

Tomorrow we get the latest US Jobless Claims figures.

Watch the video below