Gold Technical Analysis
A lot of noise will continue to be a factor in this market. The gold market has drifted a little bit higher during the early part of the trading session on Thursday as we are hanging around just above the $4,200 level. This is a market that may be a little bit choppy on Thursday as we are waiting for the jobs number to come out on Friday.
Jobs Number Impact
A lot of noise will continue to be a factor in this market, and I do think that we need to look at this through the prism of a market that is holding its breath. As that being the case, I think we have to understand that interest rates are the big killer at the moment for gold markets, but really the jobs number will give us an idea as to whether or not the Federal Reserve needs to be tight going forward.
There are some shifts in expectations. At one point, it was all about rate hikes in October and December. Now they’re somewhat pushing that toward December. That doesn’t change their trajectory; it just changes the timing. Gold, of course, being sensitive, is something I’m watching.
The jobs number will make it very noisy tomorrow. Really, it’s going to be all about what happens with rates. At this point, I’m somewhat neutral with gold. It’s very difficult to get overexposed here.
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