Gold Technical Analysis – The focus turns to the US CPI

Fundamental Overview

Gold remains rangebound as the focus turns to the US CPI report due next Tuesday. 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

On the daily chart, we can see that gold eventually bounced around the major upward trendline once again. The buyers stepped in with a defined risk below the trendline to position for a rally back into the 3438 resistance. The sellers might want to wait for the price to come into the resistance or break below the major trendline to pile in for new lows with better setups.

Gold Technical Analysis – 4 hour Timeframe

On the 4 hour chart, we can see that the price broke above the minor downward trendline that was defining the pullback into the major trendline. The buyers piled in on the break increase the bullish bets into the 3438 resistance. The sellers, on the other hand, don’t have much where to lean onto here so it would be better to wait for a break below the major trendline before considering new shorts.

Gold Technical Analysis – 1 hour Timeframe

On the 1 hour chart, we can see that we have a minor upward trendline defining the bullish momentum on this timeframe. The buyers will likely continue to lean on the trendline to keep pushing into new highs, while the sellers will look for a break lower to target a deeper pullback into the 3310 level next. The red lines define the average daily range for today.

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