Gold Price Analysis – Gold Pops as Weak Jobs Report Sparks Short-Term Rally

Gold Technical Analysis

The gold market has jumped higher to kick off the trading session on Monday, as traders come back to react to the jobs report last week. That being said, I think this is a situation where we will be looking to fade short-term rallies that show signs of exhaustion. This is the catch in the market right now. I believe we are still trying to determine which longer-term direction makes the most sense at the moment.

In the meantime, though, a little bit of a pop does make a lot of sense. After all, we had been falling for quite some time, and we bounced from the crucial $4,000 level, but I’m not bullish on gold quite yet. If we were to break down below the $3,900 level, then possibly we would go much lower.

Death Cross Risks and Overhead Resistance

Short-term rallies, I think at this point in time, will probably continue to see the 200-day EMA act as a bit of a barrier somewhere near the $4,300 region by the time we get there. The 50-day EMA is trying to drop below the 200-day EMA to kick off the so-called death cross, but quite frankly, that’s normally late.

I think we’re in the middle of trying to find the floor. I don’t think we have quite yet, but in the short term, we might get a little bit of a pop. Signs of exhaustion could be a selling opportunity. Whether or not we can break below $4,000 will be the question. This area will continue to attract headlines and, therefore, a lot of volume.

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