Gold Technical Analysis – Eyes on the US CPI

Fundamental Overview

Gold pulled back from the highs yesterday as the recent rise in real yields and the US dollar eventually weighed on the market. The focus has now switched to the US CPI report due later today. Higher than expected data should provide a deeper pullback as real yields will likely rise further. Conversely, a soft report might give gold another boost to push into a new all-time high.

Gold Technical Analysis – Daily Timeframe

On the daily chart, we can see that gold extended the rally into yet another all-time high recently. From a risk management perspective, the buyers will have a better risk to reward setup around the 2790 level, while the sellers will look for a break below the level to start targeting the 2600 level next.

Gold Technical Analysis – 4 hour Timeframe

On the 4 hour chart, we can see that the momentum became even stronger recently as the price got further away from the trendline. If we get a deeper pullback, we can expect the buyers to lean on the trendline again with a defined risk below it to position for a rally into new highs. The sellers, on the other hand, will want to see the price breaking lower to increase the bearish bets into the 2600 level next.

Gold Technical Analysis – 1 hour Timeframe

On the 1 hour chart, we can see that we have a strong support zone around the 2882 level where the price got rejected from several times in the past weeks. This is where we can expect the buyers to step in with a defined risk below the support to position for a rally into new highs.

The sellers, on the other hand, will want to see the price breaking lower to increase the bearish bets into the major trendline next. The red lines define the average daily range for today

Upcoming Catalysts

Today, we have the US CPI report. Tomorrow, we get the US PPI and the latest US Jobless Claims figures. On Friday, we conclude the week with the US Retail Sales data.

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