UPDATE: Gold prices remain rangebound as traders brace for crucial economic data that could shift market dynamics. The precious metal is currently leaning against its major trendline, showing resilience despite lower-than-expected Core CPI and Core PPI figures released earlier today.
Traders are on high alert as the market awaits the release of US Jobless Claims and Retail Sales figures, expected later today. The outcomes could have immediate implications on gold’s trajectory, especially as real yields are anticipated to decline further amid ongoing Federal Reserve easing.
On the daily chart, gold has once again retreated to its major upward trendline. Analysts expect buyers to step in, establishing positions for a potential rally toward the 3438 resistance. However, should selling pressure intensify, a break below this trendline could lead to bearish bets targeting the 3120 level.
In a more granular analysis on the 4-hour timeframe, a minor trendline connecting recent swing lows suggests that another move is imminent. Buyers should remain vigilant for potential bounce opportunities, while sellers need to breach this minor trendline to confirm a downward shift in momentum.
On the hourly chart, traders are primarily focusing on dip-buying opportunities near the trendlines. The average daily range has been outlined, and the market is poised for significant movement in response to the upcoming data releases.
As the week progresses, the spotlight will also turn to the University of Michigan Consumer Sentiment survey, set to conclude the week’s economic readings tomorrow. With uncertainty lingering over the inflation outlook, gold traders are urged to stay informed.
Next Steps: Investors should keep a close eye on the economic announcements scheduled for later today, as they could provide the necessary catalysts for a breakout or further consolidation in gold prices. This is an evolving situation that could dramatically affect trading strategies and market sentiment.
Stay tuned for further updates on this developing story as we monitor the latest trends and data impacting the gold market.
