Gold got stuck in a consolidation around the highs following the beat in the US CPI report. The data didn’t change much the market’s pricing for rate cuts though as we had many other weaker US data before the CPI report. Nevertheless, there is still the risk of a hawkish FOMC meeting next week, although the market might fear it much less if the data today and tomorrow comes out much weaker than expected.
Gold Technical Analysis – Daily Timeframe
On the daily chart, we can see that Gold is consolidating around the highs with the price recently bouncing near the blue 8 moving average and the previous all-time high at 2142. The two most important supports for the buyers will be the 2142 level and the 2080 zone. The sellers, on the other hand, will want to see the price breaking those levels to keep piling in and target new lows.
Gold Technical Analysis – 4 hour Timeframe
On the 4 hour chart, we can see that from a risk management perspective, the buyers will have a much better risk to reward setup around the 2142 level where we can also find the confluence with the 38.2% Fibonacci retracement level and the daily 8 moving average. Alternatively, we have also a strong support at the 2080 zone where we have the 61.8% Fibonacci retracement level and the trendline. The sellers, on the other hand, will want to see the price breaking below these levels to pile in and keep targeting new lows.
Gold Technical Analysis – 1 hour Timeframe
On the 1 hour chart, we can see that we have a minor trendline where we have the confluence of the red 21 moving average and the 61.8% Fibonacci retracement level. This is where we can expect the buyers to step in with a defined risk below the trendline to position for new highs. The sellers, on the other hand, will want to see the price breaking lower to position for a drop into the 2142 level targeting a break below it.
Upcoming Events
Today we get the US PPI, the US Retail Sales and the US Jobless Claims figures. Tomorrow, we conclude the week with the University of Michigan Consumer Sentiment survey. Strong data is likely to weigh on Gold in the short term, while weak figures should give it a boost.
