Gold Markets Technical Analysis
The gold market initially plunged overnight but has stabilized a bit after the jobs number came out in the United States. The jobs number came in a little bit more hawkish than expected, but not enough to really cause a lot of noise. So, it’s more likely than not to be a situation where we go right back into consolidation. Even if we do pull back from here, the market still has plenty of support underneath, especially near the $2,600 level, the uptrend line, and then finally the $2,500 level.
All things being equal, this is a market that if we can break above the $2,675 level, then we could open up a move towards the $2,725 level, which was the most recent swing high. Anything above there opens up the possibility of a move to $2,800. This is a market that’s been in an uptrend for quite some time, so there’s no reason to fight that. And of course, there are still plenty of geopolitical issues out there that I think keep gold in the spotlight, at least somewhat.
And with this, I think you’ve got a market that is going to continue to try to go higher and with this, I think short-term dips will probably be looked at as potential value to pick up cheap ounces, if you will. I have no interest in trying to short this market anytime soon, as the market has been so bullish.
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