After the selloff following the strong NFP report, Gold has been consolidating as the market remains uncertain on the future path for interest rates as the data continues to push back on the aggressive rate cuts expectations. In the bigger picture, the market remains supported by the fact that the Fed has ended its tightening cycle and what will likely follow next is the cutting cycle, but in the short-term fears of a reacceleration in inflation could put a lid on the gains and even trigger some bigger selloffs. Today we will see the latest US Jobless Claims figures and then the calendar is empty until the US CPI next Tuesday. Strong data is likely to weigh on Gold while weak figures should give it a boost.
Gold Technical Analysis – Daily Timeframe
On the daily chart, we can see that Gold sold off following the strong NFP report, bounced on the broken trendline and started to consolidate ever since. The market participants are probably waiting for the US CPI data next Tuesday, although we should already start to see some positioning into the event in the next couple of days.
Gold Technical Analysis – 4 hour Timeframe
On the 4 hour chart, we can see more clearly how the price dropped into the broken trendline and then continued lower into the key 2015 support where the buyers stepped in with a defined risk below the level and positioned for a rally into the 2080 resistance. The sellers, on the other hand, will want to see the price falling back into the support and break below it to gain more conviction and start targeting the 1972 level.
Gold Technical Analysis – 1 hour Timeframe
On the 1 hour chart, we can see that the price yesterday spiked into the 2042 resistance zone where the sellers stepped in with a defined risk above it to position for a drop back into the 2015 support. The price in the Asian session fell below the trendline and bounced on the 2030 support. This is where we can expect the buyers to step in with a defined risk below the support to target a rally into the 2042 resistance and eventually a break above it. The sellers, on the other hand, will want to see the price breaking even lower to increase the bearish bets into the 2015 support.
