Gold Technical Analysis

Gold eventually erased the gains from the
geopolitical events between Israel and Iran and found support around a key
trendline. The price started to consolidate as the market awaits some new
catalyst to push it in either direction. This week has been pretty empty on the
data front and there was no Fedspeak as the FOMC is in the blackout period. We
did get the latest US PMIs though
and they missed expectations across the board with some worrying commentary
around the labour market. Interestingly, it didn’t spark a rally in Gold, so
the market might want to see some more data before trusting the PMIs.

Gold Technical Analysis –
Daily Timeframe

On the daily chart, we can see that Gold eventually
pulled back into the key trendline where we
can also find the red 21 moving average for confluence. This is
where we can expect the buyers to pile in with a defined risk below the
trendline to position for a rally into a new all-time high. The sellers, on the
other hand, will want to see the price breaking lower to increase the bearish
bets into the next major trendline around the 2150 level.

Gold Technical Analysis – 4
hour Timeframe

On the 4 hour chart, we can see that the price got
stuck in some consolidation around the trendline with a strong resistance around
the 2330 level where we can also find the red 21 moving average for confluence.
The sellers are clearly stepping in around the resistance with a defined risk
above it to position for a continuation of the downward trend. The buyers will
need to break above the resistance to invalidate the bearish setup and increase
the bullish bets into a new all-time high.

Gold Technical Analysis – 1
hour Timeframe

On the 1 hour chart, we can see more
closely the tight range between the 2310 support and the 2330 resistance. We
can also see that we have a downward trendline adding confluence to the
resistance zone. A breakout to the upside will be significant and will likely
trigger a stronger bullish move. Conversely, a breakout to the downside should
see the bearish momentum increasing and pushing the market into the next
support around the 2150 level.

Upcoming Events

Today we get the US Q1 GDP and the latest US Jobless
Claims figures. Tomorrow, we conclude the week with the US PCE report. Strong
data is likely to weigh on Gold, while weak figures should give it a boost.

See the video below

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