Gold choppy during Friday jobs numbers

Gold markets went back and forth during the trading session on Friday, bouncing around the $1310 region. The weekly chart has formed something along the lines of a hammer, so I think that it’s only a matter of time before we go to the upside. If we break down below the uptrend line on the weekly chart, that unwinds this market rather drastically. Pay attention to the US dollar, and more importantly, the interest rate coming out of the United States. This is a major influence on the demand for precious metals, and of course gold will follow that situation. I think that the market should continue to see a lot of noise, but I think if we can break above the $1325 level, it’s likely that we will continue to see go higher, perhaps reaching towards the $1350 level. The alternate scenario of course is that we break down below the $1300 level, and perhaps the uptrend line that has been a major influence on this market.

If we do break down below the uptrend line, the market unwinds to the $1275 level, and then perhaps down to the $1250 level. That’s an area that is also important, so be interesting to see how this plays out. Longer-term though, I believe that gold has a certain amount of attraction to it, especially considering that we have so much in the way of geopolitical issues. However, the strengthening US dollar continues to work against it, so it is a situation where we see a lot of back-and-forth.

Gold Prices Video 07.05.18