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Gold Price Forecast – Gold Falls Again, Waiting For NFP

By:
Christopher Lewis
Published: Feb 1, 2024, 13:33 UTC

The gold markets initially tried to rally during the training session on Thursday but then gave back those gains to start selling off again. Ultimately, gold will wait to see what happens with the Non-Farm Payroll numbers.

Gold bullion, FX Empire

In this article:

Gold Price Predictions Video for 02-02-2024

Gold Markets Technical Analysis

Gold initially did rally a bit during the trading session Thursday but then turned around to show signs of weakness. At this point, I think it’s probably only a matter of time before we make a bigger decision. Still, the market itself continues to see the $2,000 level underneath as a major support level, perhaps down to the $1,980 level.

If we pull back to this area, I think there will be a lot of buyers in that general vicinity that the market will turn back around. The market breaking above the $2,060 level then opens up the possibility of a move to the $2,075 level. In general, I think this is a market that probably stays somewhat range-bound, and it is worth noting that Friday, of course, is the jobs number, so that will throw a lot of noise into the market. I don’t think we break out of this range.

I like buying short-term dips and therefore, I welcome the shooting star and of course, the negativity here. Really at this point in time though, I do think eventually, either through interest rates or geopolitical concerns, that we break above the $2075 level and become more into a buy and hold type of market, but if we were to break down below the $1,980 level, that has the market breaking down below the 200-day EMA and of course changing the overall trajectory of gold probably for the long term.

You will have to pay close attention to the 10 year yield, because that always has a major influence on the gold market, but we also have to pay attention to geopolitical concerns, because gold can quite often be used as a safe haven asset as well. At this point in time, there is no shortage of potential geopolitical issues, so I do think the gold will eventually find its footing and therefore I’m a buyer on each and every dip, but I also recognize that it’s going to be very difficult trading for some time as markets are so erratic at the moment.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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