Gold Technical Analysis

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.

See the video below

This article was written by FL Contributors at www.forexlive.com.