Gold Markets Get Hit by Jobs Report

Gold markets have gotten crushed after initially trying to rally during the trading session on Friday as the interest rates in America start to spike. With the 10 year taking off, the yield makes gold a lot less attractive. With this being the case, it looks very likely that we are going to continue to go lower, perhaps reaching towards the $1790 level. If we can break down below the $1780 level, then gold really starts to fall apart. This of course is something that remains to be seen, but it certainly looks as if it is a real threat at this point.

Gold Price Predictions Video 07.02.22

To the upside, we also have the 50 day EMA that continues offer resistance and I think we probably get a lot of choppy behavior at best. I would not be a buyer of gold in the short term, at least not until we can break above the $1815 level, which was the high of the session. If we can do that, then it is very likely that the market will have completely discounted higher yields and should send gold looking towards the $1850 level. That being said, I think it is a tall order to expect that to happen anytime soon, so I believe that until the bond market settle down, it is probably very difficult to think of this as a viable market, unless of course you are thinking multi year duration.

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