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Gold extends the rally after the soft NFP, but the US CPI could wipe out all the gains
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FUNDAMENTAL OVERVIEWGold extended into new highs yesterday as a soft NFP report on Friday led to a dovish repricing in Fed interest rate expectations.
A soft report, on the other hand, should reduce further the risk of Fed tightening and give gold another boost to extend the rally into new highs.
GOLD TECHNICAL ANALYSIS – DAILY TIMEFRAMEOn the daily chart, we can see that gold has almost reached the major trendline around the 4,500 level.
GOLD TECHNICAL ANALYSIS – 4 HOUR TIMEFRAMEOn the 4 hour chart, we have a minor upward trendline defining the bullish structure.
The buyers will likely lean on the trendline with a defined risk below it to keep pushing into new highs.