Fundamental Overview
Gold remains range-bound as the market continues to await US NFP and CPI reports. Yesterday, it looked like we might break above the 2660 resistance, but eventually the price pulled back down after a hot US jobs opening and ISM Services PMI.
Market prices haven’t changed much, although traders are no longer fully pricing in the next rate cut before July. The main event, however, remains the US CPI release next week. The soft data should trigger a market reaction that should support gold. Conversely, another hot report is likely to send gold lower with sellers targeting the 2500 level.
Technical analysis of gold – daily time frame
Gold Daily
On the daily chart we can see that gold continues to trade within a range between support at 2600 and resistance at 2721. Buyers have stepped around support to position for a rally into resistance with price now trading around the middle of the range. Sellers, on the other hand, are likely to rally around resistance or look for a break below support to target a dip into the main trendline around the 2400 level.
Gold Technical Analysis – 4 Hour Time Frame
Gold 4 hours
On the 4-hour chart, we can see that the price moved up into the mid-range around the 2660 level yesterday, but was rejected once again as sellers piled into bearish support. Buyers will need to break the 2660 zone to open the door for the next resistance to emerge at 2721.
Technical analysis of gold – 1 hour time frame
Gold 1 hour
On the hourly chart, we can’t add much more here as sellers will continue to pile in around these levels to target support, while buyers will look for a break higher to a bullish position at 2721 resistance. The red lines define the average daily range for today.
Upcoming Catalysts
Fed Waller, US ADP and FOMC minutes are talking today. Tomorrow we will get the latest data on US job claims. On Friday, we conclude the week with the US NFP report.