Technical analysis of the gold markets
The gold market recovered somewhat in the early hours on Friday despite the jobs numbers coming in higher than expected, but what I’m looking at here is a chart that is slightly sideways, and I think it’s likely to stay that way. The $2,700 level starts with quite a bit of resistance, all the way up to the $2,715 level, an area that has been very difficult to overcome for about two months. All things being equal, this is a market that could very well pull back and stay right where we have been. It would bring some level of awareness to the situation if we recognized that the market had been a bit overextended over the past year. And maybe we need to get rid of some of this scum.
There are still a lot of questions when it comes to the Federal Reserve or Monetary Policy, and the jobs number hasn’t helped. Other than that, rate cuts are probably off the table for the foreseeable future and if that’s the case, it will eventually work against gold, but I think we’re technically just bouncing around at this point. Whether the price will rise further remains to be seen, but I would need to breach the $2,720 level before turning bullish. In the event of a pullback, I suspect the 50-day EMA will provide support, and then the $2,600 level again. As things stand now, I am more or less neutral on this market at the moment, but I will see whether it is indeed developing positively.