Basic overview
Gold is slowly moving towards key resistance at 2721 as softer than expected US inflation data this week provides the necessary support to push into new highs.
Following slightly lower than expected US headline CPI yesterday, we saw a sharp drop in real yields which should support gold for further upside as inflationary hysteria and payback in rate cuts may have been at height
Gold Technical Analysis – Daily Chart
On the daily chart, we see that gold continues to trade within the range between the 2600 support and the resistance at 2721. The price is now getting closer to the resistance due to the soft US inflation figures this week. That is where we can expect the sellers to step into the position to fall back to the support. The buyers, on the other hand, will be looking for a higher break to increase the bullish bets to a new all-time high.
Gold Technical Analysis – Timetable 4 hours
On the 4 hour chart, we can see that the price last bounced from the mid-range around the 2660 level as the buyers piled in to target the upside and the US data gave a boost to push the price upwards. There is not much else we can gather from this time frame as the sellers will be waiting for the price to enter the front, while the buyers will be looking for a break higher.
Gold Technical Analysis – 1 Hour Time Table
On the 1 hour chart, we can see that we now have a small uptrend defining the current bullish trend in this timeframe. The buyers are likely to continue the trend to continue pushing into new highs, while the sellers will be looking for a break lower to position for fall back to the support. The red lines define the average daily range for today.
Catalysts to come
Todaywe get the latest US Jobless Claims numbers and US Retail Sales data.