Gold Markets Quiet After the Jobs Number

Gold Market Technical Analysis

Gold markets have fallen a bit during the trading session on Friday after the jobs number came out essentially as expected. Because of this, the market looks as if it is still trying to figure out where to go next, and this is also why I believe the market is probably going to stay somewhat range-bound. With this, I would pay special attention to the 50 Day EMA, which sits at the $1980 level in the front contract.

Breaking down below the $1900 level would be extraordinarily negative and could open up fresh selling. If that were to be the case, then the market would probably drop to the $1850 level, where it could meet the 200 Day EMA given enough time. Ultimately, gold continues to move back and forth, looking for some type of catalyst to get a bigger range going. The $1900 level seems to be the bottom, while the $1970 level seems to be the top. As long as we stay in this range, I would anticipate that gold continues to be very noisy.

A break above the $1970 level opens up the possibility of $2000 being targeted, perhaps even the $2050 region. That would obviously be more of a “risk-off” type of situation, and therefore it could open up quite a bit of choppy and volatile trading in other markets simultaneously. Pay attention to the US Dollar Index, because it does have a negative correlation at times. The market will continue to be very noisy, and therefore I think it will continue to be so as nothing has truly changed. Expect volatility, and trade accordingly.

Gold Price Predictions Video 04.04.22

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