Gold Technical Analysis | Forexlive

In the final part of last week, Gold rallied
strongly following an incredible plunge in Treasury yields that led to a fall
in real yields and the US Dollar. This has ultimately lifted Gold as it’s
inversely correlated with real yields. In the big picture, Gold should remain
supported amid rate cuts expectations but in the short-term, given the current
aggressive pricing, the main risk is that the economic data starts to surprise
to the upside or Fed members push back more strongly against the market’s
expectations.

Gold Technical Analysis –
Daily Timeframe

On the daily chart, we can see that Gold bounced on
the key trendline
where we had also the 61.8% Fibonacci
retracement level for confluence
and rallied into the 2060 level. The buyers should now be targeting the 2080 resistance
zone and upon a successful breakout, look forward to a new all-time high. The
sellers, on the other hand, will likely step in around the 2080 resistance to
position for another correction into the trendline.

Gold Technical Analysis – 4
hour Timeframe

On the 4 hour chart, we can see that the price last
Friday broke above the downward trendline and extended the rally into the 2060
level before falling back to retest the broken trendline. We now have a strong
support zone around the 2042 level where we can find the confluence with the old
resistance, the 38.2% Fibonacci retracement level and the red 21 moving
average. This is where we can expect the buyers to pile in, in case of
another pullback, to position for a rally into the 2080 resistance.

Gold Technical Analysis – 1
hour Timeframe

On the 1 hour chart, we can see more
closely the recent price action with the breakout of the trendline and the
following retest. The sellers are likely to pile in around these levels to
position for a pullback into the 2042 support and upon a break below it,
increase the bearish bets into the major upward trendline around the 2020
level. In case we fail to see another pullback, the buyers will look to
increase the bullish bets upon a break above the 2063 high.

Upcoming Events

Tomorrow, all eyes will be on Fed’s Waller as the
market will be eager to see if he decides to pushback against the aggressive
rate cuts expectations. On Wednesday, we will get the US Retail Sales report
while on Thursday we will see the latest US Jobless Claims figures. Finally, on
Friday, we conclude the week with the University of Michigan Consumer Sentiment
survey.

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