Gold Technical Analysis – Tariffs are back on the menu

Fundamental
Overview

Gold jumped to yet another
all-time high today following renewed tariffs fears. In fact, over the weekend,
Trump
talked about imposing a 25% tariff on steel and aluminium on all countries on
Monday and that he will announce reciprocal tariffs on Tuesday or Wednesday.

This is giving gold a boost
not only from a safe haven perspective but also because of the drop in real
yields as inflation expectations rise faster than nominal yields.

Gold
Technical Analysis – Daily Timeframe

On the daily chart, we can
see that gold extended the rally into yet another all-time high today. From a
risk management perspective, the buyers will have a better risk to reward setup
around the 2790 level, while the sellers will look for a break below the level
to start targeting the 2600 level next.

Gold Technical Analysis
– 4 hour Timeframe

On the 4 hour chart, we can
see that the momentum became even stronger recently as the price got further
away from the trendline. If we get a deeper pullback, we
can expect the buyers to lean on the trendline again with a defined risk below
it to position for a rally into new highs. The sellers, on the other hand, will
want to see the price breaking lower to increase the bearish bets into the 2600
level next.

Gold Technical Analysis
– 1 hour Timeframe

On the 1 hour chart, we can
see that the price is now close to the upper bound of the average daily range for today. We might either get some
consolidation here or a pullback. On an intraday basis, if the price were to
break below the 2882 level, we can expect the sellers to extend the pullback
into the minor upward trendline where the buyers will have their first
dip-buying opportunity. If the price were to break below the minor trendline,
then we will likely get a deeper pullback into the major trendline.

Upcoming
Catalysts

Tomorrow, we have Fed Chair Powell speaking. On Wednesday, we
get the US CPI report. On Thursday, we have the US PPI and the latest US Jobless
Claims figures. On Friday, we conclude with the US Retail Sales data.

Watch the video below

This article was written by Giuseppe Dellamotta at www.forexlive.com.