Gold Price Analysis – Gold Consolidates Above 200-Day EMA Following NFP Shock

Gold Technical Analysis

Gold is rather quiet on Monday morning as traders are trying to come to grips with whatever happened on Friday with the jobs report. The United States lost 23,000 jobs last month, and that was a bit of a shock to the market, sending gold flying. But at the same time, there are still concerns about inflation via energy, so it’s not a clear path, at least not yet, for some traders.

That being said, the gold market is above the 200-day EMA, and technically speaking, for a lot of people, that is defining the market as heading into an uptrend. We’ll just have to wait and see whether or not momentum can return, but it’s a very quiet opening on Monday, which has people probably questioning what’s going on.

Federal Reserve Outlook and Economic Data

Rates are relatively flat. They are a little higher during the day, so that might have something to do with it. But that being said, rates are stubborn, and it seems at this point in time, the next 30 days could be very important as we try to determine what happens at the next Federal Reserve meeting in September.

There will be a lot of questions paid attention to when it comes to inflation, CPI, PPI numbers for example, and then, of course, the employment numbers will be more likely than not very big this time around. We’ll just have to wait and see because the Federal Reserve has not exactly come out and said that they’re looking to be dovish, so it’s a question of will they have to change their tune.

That has a major influence on gold. And then, of course, we have the entire problem in the Middle East that seemingly isn’t going anywhere, although it doesn’t seem to be getting worse, so I suppose that’s something. Gold quiet on Monday, but has been bullish for several days now.

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