Gold Midday Technical Analysis November 1

Gold markets have rocketed to the upside during the trading session on Thursday, as the US dollar has got hammered. As there is almost a 90% inverse correlation between the US dollar and gold, this is not much of a surprise. However, we are getting a little stretched and of course as we head into the jobs number on Friday, it’s likely that we will fizzle out a bit.
Christopher Lewis
Gold Midday daily chart, November 01, 2018

Gold markets have rallied rather stringently during trading on Thursday, reaching towards the $1235 level. There’s a lot of noise between here and the $1245 level, and with the jobs number coming it might be difficult to get above there in the short term. In fact, I suspect that sooner rather than later you will see a bit of exhaustion, and that will lead to some profit taking, probably late in the US session as people will not want to hold futures contracts overnight, or into the figures. I believe that there is a massive “ceiling” at the $1250 level, and a break above there would be extraordinary, and certainly bullish. However, that’s not going to happen between now and the jobs number, barring some type of major geopolitical event.

Price of Gold Midday Video 01.11.18

There has been a little bit more risk-taking overall in the currency markets and the derivatives markets, which has beat down the greenback. That has the knock on effect over here of bullish pressure, but as we start to see a lot of resistance just above, I think it is only a matter of time before the sellers come in and push this market down five, maybe $10. It’s not that I don’t like gold, I just don’t like Gold hears so keep that in mind and volatility coming our way at 8:30 AM New York time tomorrow.

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