A huge week is coming for gold as traders turn their focus to the US NFP and CPI reports

FUNDAMENTAL
OVERVIEWGold is now consolidating
between major technical levels as traders await new catalysts before picking a
direction. The fundamentals are still against rising prices, so we either get
stuck in a wide range below the January’s high or will see another flush lower
in the next weeks or months. Next week is going to be a
big one for precious metals. In fact, we will get the US NFP report on
Wednesday and the US CPI on Friday. Strong data is going to trigger a hawkish
repricing in interest rate expectations and likely push gold into new lows. Soft
data, on the other hand, should support the market amid Fed’s rate cut bets.GOLD TECHNICAL
ANALYSIS – DAILY TIMEFRAMEOn the daily chart, we can
see that gold is now consolidating above the trendline as traders await new
catalysts for the next major move. If we get another flush into the trendline,
we can expect the buyers to step in with a defined risk below it to position
for a rally into a new record high. The sellers, on the other hand, will look for
a break lower to increase the bearish bets into the 4273 level next.GOLD TECHNICAL ANALYSIS – 4
HOUR TIMEFRAMEOn the 4 hour chart, we can
see that we have a resistance zone around the 5100 level where we eventually got
the rejection. If the price rallies back into it, we can expect the sellers to
step in again with a defined risk above the resistance to position for a drop into
the trendline targeting a breakout. The buyers, on the other hand, will look
for a break higher to pile in for a rally into new all-time highs.GOLD TECHNICAL ANALYSIS – 1
HOUR TIMEFRAMEOn the 1 hour chart, we can
see that we have a minor downward trendline defining the bearish momentum on
this timeframe. The sellers will likely continue to lean on the trendline with
a defined risk above it to keep pushing into new lows, while the buyers will
look for a break higher to target the 5100 resistance. The red lines define the
average daily range for today. UPCOMING CATALYSTSToday we conclude the week with the University of Michigan Consumer
Sentiment data.
This article was written by Giuseppe Dellamotta at investinglive.com.

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