Fundamental
Overview
Gold remains confined in a
range as the market continues to wait for the US NFP and CPI reports. Yesterday
it seemed like we could get a break above the 2660 resistance but eventually
the price got smacked back down following the hot US
Job Openings and ISM
Services PMI.
The market’s pricing didn’t
change much although traders no longer fully price in the next rate cut before
July. The main event though remains the US CPI release next week. Soft data should
trigger a dovish market reaction which should support gold. Conversely, another
hot report will likely send gold lower with the sellers targeting the 2500
level.
Gold
Technical Analysis – Daily Timeframe
Gold Daily
On the daily chart, we can
see that gold continues to trade inside the range between the 2600 support and the 2721 resistance. The buyers stepped in
around the support to position for the rally into the resistance with the price
now trading around the middle of the range. The sellers, on the other hand,
will likely pile in around the resistance or look for a break below the support
to target a drop into the major trendline around the 2400 level.
Gold Technical Analysis
– 4 hour Timeframe
Gold 4 hour
On the 4 hour chart, we can
see that the price yesterday rallied into the middle of the range around the
2660 level but got rejected once again as the sellers piled in to position for
a drop into the support. The buyers will need to break the 2660 zone to open
the door for a rally into the 2721 resistance next.
Gold Technical Analysis
– 1 hour Timeframe
Gold 1 hour
On the 1 hour chart, there’s
not much else we can add here as the sellers will keep on piling in around these
levels to target the support, while the buyers will look for a break higher to
position for a rally into the 2721 resistance. The red lines define the average daily range for today.
Upcoming
Catalysts
Today, we have Fed’s Waller speaking, the US ADP and the FOMC Minutes. Tomorrow,
we get the latest US Jobless Claims figures. On Friday, we conclude the week
with the US NFP report.
