Gold Price Analysis – Gold Clings to $4,000 Support Ahead of Jobs Data

Gold Technical Analysis

Gold markets have initially fell a bit during the early part of the trading session here on Wednesday, but then turned around to show signs of life. All things being equal, this is a market that I think continues to watch the $4,000 level very closely, as it’s a large round, psychologically significant figure and an area that I think will continue to print headlines for the markets.

Eyeing the Strong US Dollar and Thursday’s Jobs Data

Falling a bit and then bouncing makes sense; that’s what we’ve done for a couple of days now, but at the same time, we also have to keep in mind that interest rates in the United States have risen. The main culprit here is that the US dollar is being so strong, but whether or not we break down remains to be seen. Keep in mind that the jobs number is on Thursday, so that’s probably a high bar to overcome in order to really get the market moving for a bigger move.

Ultimately, a lot of traders are betting on the idea that the Federal Reserve is going to raise rates twice between now and the end of the year, and if they do, then it makes sense that gold continues to struggle. Ultimately, though, I think this is a situation where a short-term bounce probably just means we’re just hanging out in a short-term range. I don’t look at this as a market that’s ready to take off to the upside, at least not yet, but it certainly is an intriguing area. If we were to break down below the low of the Tuesday session, then it’s possible that the market could go looking to the $3,500 level. Ultimately, though, I think we’re probably more sideways than anything else.

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