Precious Metals Market

After the rapid repricing of Fed rate cut expectations, US economic exceptionalism is now arguably already priced into the US dollar, leaving little room for downside disappointment in upcoming US economic data.

Gold’s technical outlook remains bullish above previous-resistance-turned-support near $2200 ahead of NFP on Friday

Key factors precious metals traders will be watching for the rest of this week are discussed in this article. US dollar and yields rise following on hawkish comments from the Fed’s Christopher Waller, but this has not prevented gold from rising back above $2200. Technical analysis point to new records for gold.

Looking at an equal-weighted gold basket against FX majors, its bullish character has certainly changed since breaking above its previous ATH.

Welcome to another edition of Technical Tuesday, a weekly report where we highlight some of the most interesting markets that will hopefully appease technical analysts and traders alike. In this week’s report, we will get technical on precious metals.

While gold displayed mild bearish price action, leading to some calls that it may have peaked, I am unequivocally convinced that its long-term trajectory remains bullish, and it is conceivable that prices could soon reach unprecedented highs again.

We have a shorter trading week due to the long Easter weekend. As there is a lack of top-tier data, we take at how the US dollar index, Nasdaq 100 and gold have performed around this time of year.

Gold, silver and copper all rally as US dollar drops despite hot inflation, with base metals finding additional boost from optimism about Chinese demand. Silver analysis suggests the grey metal could be in for more gains, while gold analysis point to a new record high.

Gold analysis: The precious metal weakened after a stronger than expected CPI report, but the weakness is likely to be short-lived. Indeed, the trend is still quite strong and many traders will be looking fade into short-term weakness.

Looking back at data from the 1960s, gold has only risen nine or more days on nine occasions. And such a sequence has failed to mark a market top this century.

Gold is overbought on a short-term basis, but the long-term returns hint at more room to run higher from here...

Dollar weakens as focus turns to Powell testimony and key employment data. Gold technical analysis suggests metal is about to hit a new record high.

Some analysts are speculating that the market is “sniffing out” the fact that the US and other developed countries will be unable to maintain high interest rates for long given their record debt loads. See what it might mean for Gold and Bitcoin!

What factors have contributed to the metal’s ascend? Coming up later in the week, we have Powell's testimony and February jobs report to look forward to. For now, gold technical analysis point higher and suggest we could see a new record high soon.

Gold is contemplating a thrust towards record highs after logging the highest close on record last Friday. With little visible technical resistance evident on the charts, whether it gets there will likely come down to what happens with the US dollar and bond yields over the coming days.

Gold is carrying short-term bullish momentum into the coming week, with potential for a move up toward the 2024 highs in the $2060 area.