Fundamental Overview
Yesterday, gold reached a new all-time high despite strong US economic data, including better-than-expected Retail Sales and Jobless Claims.
Overall, gold’s upward trend is likely to continue as real yields are expected to decline during the Fed’s easing process. Any pullbacks may result from changes in rate cut expectations, but as long as the Fed’s approach remains unchanged, the uptrend should hold.
The upcoming US election could significantly impact gold prices, with a Trump victory potentially increasing real yields due to optimistic growth and reduced rate cut expectations.
Gold Technical Analysis – Daily Timeframe
The daily chart shows gold’s new all-time high. If a pullback occurs, buyers may use the major trendline as a buying opportunity, while sellers will look for a break below to target the 2500 level.
Gold Technical Analysis – 4 Hour Timeframe
The 4-hour chart displays a minor upward trendline supporting the current bullish momentum. Buyers are likely to continue relying on this trendline, while sellers may target a drop toward the major trendline.
Gold Technical Analysis – 1 Hour Timeframe
On the 1-hour chart, there is a support zone around the previous all-time high, creating a better risk-to-reward setup for buyers looking to position for new highs. Sellers will aim for a break below to invalidate the bullish outlook and potentially target a drop toward the major trendline.
The red lines indicate today’s average daily range.
