Yesterday, Gold surged to new highs following some worries about regional banks and the quick fall in Treasury yields and the US Dollar. The US Jobless Claims were also a bit softer than expected but that was coupled with a strong ISM Manufacturing PMI report. Today all eyes will be on the US NFP report where strong data might provide a pullback or even a major selloff if it’s too hot. On the other hand, weak numbers across the board will likely send Gold even higher.
Gold Technical Analysis – Daily Timeframe
On the daily chart, we can see that after the break of the trendline, Gold continued to maintain a bullish bias as the buyers keep on buying the dips into the 2080 resistance zone. The sellers don’t have much where to lean on at the moment, so they should wait for the price to reach the resistance before stepping in to position for a drop into the 1972 level.
Gold Technical Analysis – 4 hour Timeframe
On the 4 hour chart, we can see that the price yesterday pulled back into the upward trendline where we had also the confluence with the red 21 moving average. The buyers piled in with a defined risk below the trendline to position for a rally into the 2080 resistance. The sellers, on the other hand, will want to see the price reversing and breaking below the trendline to start targeting the 2015 support and upon a further break lower looking for the 1972 level.
Gold Technical Analysis – 1 hour Timeframe
On the 1 hour chart, we can see that the price is consolidating around the 2055 level this morning ahead of the NFP report. More aggressive traders might want to trade the breakout with the buyers increasing the bullish bets in case the price breaks to the upside and the sellers entering the market on a break to the downside. From a risk management perspective though, the buyers will have again a better risk to reward setup around the upward trendline.
See the video below
