Trading Economics:
Gold rose toward last week's highs at 1963 on Tuesday, approaching its highest levels in a month amid general USD weakness, as easing US inflation raised hopes that the Federal Reserve is close to the end of its current monetary policy tightening cycle. Still, the US central bank is widely expected to raise interest rates by 25 basis points this month, while traders scaled back bets of further rate increases this year. Investors now await more US data and corporate earnings reports from major US firms this week for more clues on the economy.
Gold has been in a tight trading range since the beginning of the week after having a very strong bullish push last week. Bullish structure is still holding, and it seems that pre-NY markets have pushed new highs showing buyers are still in control of the markets.
Market Structure (Bullish BIAS)
- Bullish MS (D,4H,1H), Bearish MS (W)
- The bias for the day is Bullish as buyers are clearly in control, and we just printed aggressive new highs. Fundamentals and technical indicators are pointing to the buyside.
Data in focus:
- Retail Sales (8:30 AM)
- Look for retail sales to show signs of consumer strength and behavior. This is a leading economic indicator as retail sales drive corporate earnings, inflation, etc.
- High numbers = inflationary. Low numbers = disinflationary
Trade Ideas:
- ABC BULLISH breakout above last week's highs (1964)
- ABC BULLISH rejections from 1H BOS (1960)
- ABC BULLISH rejections from 4H Demand zone (1946)
Gold rose toward last week's highs at 1963 on Tuesday, approaching its highest levels in a month amid general USD weakness, as easing US inflation raised hopes that the Federal Reserve is close to the end of its current monetary policy tightening cycle. Still, the US central bank is widely expected to raise interest rates by 25 basis points this month, while traders scaled back bets of further rate increases this year. Investors now await more US data and corporate earnings reports from major US firms this week for more clues on the economy.
Gold has been in a tight trading range since the beginning of the week after having a very strong bullish push last week. Bullish structure is still holding, and it seems that pre-NY markets have pushed new highs showing buyers are still in control of the markets.
Market Structure (Bullish BIAS)
- Bullish MS (D,4H,1H), Bearish MS (W)
- The bias for the day is Bullish as buyers are clearly in control, and we just printed aggressive new highs. Fundamentals and technical indicators are pointing to the buyside.
Data in focus:
- Retail Sales (8:30 AM)
- Look for retail sales to show signs of consumer strength and behavior. This is a leading economic indicator as retail sales drive corporate earnings, inflation, etc.
- High numbers = inflationary. Low numbers = disinflationary
Trade Ideas:
- ABC BULLISH breakout above last week's highs (1964)
- ABC BULLISH rejections from 1H BOS (1960)
- ABC BULLISH rejections from 4H Demand zone (1946)