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Gold Technical Analysis - Short-term bias turned bearish
Like many other markets, gold has been in a steady retreat since last Wednesday, although it is not clear what was behind the move. what next
Fundamental overview
Gold has been in a steady decline since hitting its all-time high last Wednesday. Since last Wednesday we have seen a change in many other markets and it is not clear what was behind this move. Data continues to point to a resilient economy with inflation slowly returning to target. In that case, the Federal Reserve will cut interest rates at least twice this year.
On the other hand, the risks to the growth picture are that as the Fed keeps policy tight, the new stimulus could be Trump, who is now looking more and more like a potential winner, and whose policies are seen as inflationary, which could lead to a Fed slowdown in Reduce the interest rate.
On the daily chart,
We can see that gold broke below the 2430 level last week and extended the decline as sellers started to get more aggressive. The natural target should be the key support of 2277. Buyers will look for buying opportunities on lower time frames, but a return above the 2430 resistance will give them more confidence to go higher.
On the 4-hour chart,
We can see that the price has recently crossed the trendline and has turned more bearish in the short term. Now we see consolidation at the 2400 level.
This is where we can expect buyers with defined risk to enter below the level to set up for a new high. On the other hand, sellers want to see the price lower to extend bearish bets to the 2348 level.
On the 1-hour chart,
We can see the current price action more clearly. Buyers will want to see the price break above the last low at 2412 to gain some control and increase bullish bets to new highs with the aim of breaking above the 2430 resistance.
On the other hand, sellers may want to wait for the price to break back to the 2430 resistance to get back with better risk to adjust reward or increase bearish bets on a break below the 2387 level. The red lines mark the average daily range for today.
Like many other markets, gold has been in a steady retreat since last Wednesday, although it is not clear what was behind the move. what next
Fundamental overview
Gold has been in a steady decline since hitting its all-time high last Wednesday. Since last Wednesday we have seen a change in many other markets and it is not clear what was behind this move. Data continues to point to a resilient economy with inflation slowly returning to target. In that case, the Federal Reserve will cut interest rates at least twice this year.
On the other hand, the risks to the growth picture are that as the Fed keeps policy tight, the new stimulus could be Trump, who is now looking more and more like a potential winner, and whose policies are seen as inflationary, which could lead to a Fed slowdown in Reduce the interest rate.
On the daily chart,
We can see that gold broke below the 2430 level last week and extended the decline as sellers started to get more aggressive. The natural target should be the key support of 2277. Buyers will look for buying opportunities on lower time frames, but a return above the 2430 resistance will give them more confidence to go higher.
On the 4-hour chart,
We can see that the price has recently crossed the trendline and has turned more bearish in the short term. Now we see consolidation at the 2400 level.
This is where we can expect buyers with defined risk to enter below the level to set up for a new high. On the other hand, sellers want to see the price lower to extend bearish bets to the 2348 level.
On the 1-hour chart,
We can see the current price action more clearly. Buyers will want to see the price break above the last low at 2412 to gain some control and increase bullish bets to new highs with the aim of breaking above the 2430 resistance.
On the other hand, sellers may want to wait for the price to break back to the 2430 resistance to get back with better risk to adjust reward or increase bearish bets on a break below the 2387 level. The red lines mark the average daily range for today.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.