Technical analysis of the gold markets
The gold market initially fell overnight, but has stabilized somewhat after the US jobs figure was released. The number of lanes was a little more aggressive than expected, but not enough to really cause a stir. So it’s more likely than not that we’ll get into a situation where we’ll go straight back into consolidation. Even if we pull back from this point, the market still has plenty of support underneath, especially near the USD 2,600 level, the uptrend line and ultimately the USD 2,500 level.
All things being equal, this is a market that if we can get above the $2,675 level, it could open a move towards the $2,725 level, which was the most recent swing high. Anything above that opens the possibility of a move towards $2,800. This is a market that has been in an uptrend for quite some time, so there is no reason to fight it. And of course, there are still plenty of geopolitical issues that I think keep gold in the spotlight, at least somewhat.