Gold Technical Analysis
The gold market initially fell during the trading session on Friday, but found enough support at that crucial uptrend line I’ve been talking about for a couple of days now. Going back to New Year’s Day, it does look a lot like a market that is going to continue to see a little bit of demand and support underneath here.
But I don’t necessarily think it’s the be-all, end-all move. A bit of a drift to the upside probably is more likely than not. With that being said, the 200-day EMA above could offer a bit of resistance, and it is very possible that we can see this market do quite a bit of choppiness over the next couple of days while we try to determine what happens with interest rates.
Interest Rates Did Fall After the U.S. Jobs Numbers Came In Anemic
That was the initial reaction, but whether or not it changes everything, we’ll have to wait and see. I do like gold long term, but right now, this is all about the rates market, which has been somewhat all over the place.
The idea that the Federal Reserve now has to think about being a little bit more dovish with its monetary policy helps, I guess. But let’s be honest, a big part of inflation is due to energy, which is something that they have no control over. This is a tough situaiton for them.
Slightly bullish, but expect a lot of noise, would be my summary of what I’m looking at. This is a market that has a lot of things to pay attention to at the same time currently.
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