Gold (XAU/USD) is holding onto last week’s gains after July’s weak US jobs report pushed Fed rate-hike expectations sharply lower, and traders are now positioning ahead of Wednesday’s US Consumer Price Index (CPI) print.

A textbook retest on the 1-hour chart

Gold on the 1-hour chart, pulling back into the previous range highs after breaking out overnight.[/caption]

Following on from our previous coverage of gold’s move higher, the metal has extended its advance. After a major move higher and a couple of days of consolidation, gold delivered another explosive breakout above the range highs overnight.

We’re now seeing a pullback, and it’s coming in and testing that previous resistance, the old range highs area, beautifully. Price is also sitting within the local long reload zone of the latest up move, and we’ve had a nice bounce off the 0.618 Fibonacci retracement, marked with the white circle on the chart.

Gold is also positioned neatly in the area between the 1-hour 20 and 50 EMAs. A reclaim of the 1-hour 20 EMA could hand the move some further momentum from here.

4,360 is the intraday line on the 15-minute

Gold on the 15-minute chart, with 4,360 as the level that decides the intraday picture.[/caption]

Dropping down to the 15-minute chart, this local area shows up even more clearly. What we potentially have here is a break and retest of this low-timeframe level, and holding it could take gold higher.

A break below the 4,360 level, marked with the red circle, could potentially take price lower and back down into the range. That would potentially mark a top for this latest explosive move.

For now, though, the bulls appear to be in control of gold from an intraday perspective.

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