Gold Technical Analysis – Eyes on the US PPI

Fundamental Overview

The US CPI yesterday missed expectations across the board and triggered a rally in gold that almost reached the all-time high.

We saw some mixed price action in other markets as the details that feed into the Core PCE were less encouraging with the early estimates increasing.

Today, we get the US PPI and the markets will likely focus again on the details that feed into the Core PCE as it could change the early estimates materially.

Gold Technical Analysis – Daily Timeframe

On the daily chart, we can see that gold is now trading near the all-time highs. This is where we can expect the sellers to step in with a defined risk above the high to position for a drop into the 2790 level. The buyers, on the other hand, will want to see the price breaking higher to increase the bullish bets into new highs.

Gold Technical Analysis – 4 hour Timeframe

On the 4 hour chart, we can see that the price broke above the top of the recent range. If we get a retest, we can expect the buyers to step in with a defined risk below the level to position for a rally into new highs. The sellers, on the other hand, will want to see the price falling back below the level to target the trendline next.

Gold Technical Analysis – 1 hour Timeframe

On the 1 hour chart, we can see that we have another minor upward trendline defining the bullish momentum on this timeframe. The buyers will likely lean on the trendline with a defined risk below it to keep pushing into new highs, while the sellers will look for a break lower to increase the bearish bets into the major trendline. The red lines define the average daily range for today.

Upcoming Catalysts

Today we get the US PPI data and the US Jobless Claims figures. Tomorrow, we conclude the week with the University of Michigan Consumer Sentiment report.

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