Gold Price Forecast – Gold Gets Hammered After Jobs Number

Christopher Lewis
Published: Feb 2, 2024, 17:07 UTC

Gold markets have gotten hammered during the trading session on Friday as the jobs number in the United States came out much stronger than anticipated. That being said, it’s very likely that this is a short-term phenomenon more than anything else.

Gold bullion, FX Empire

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Gold Price Predictions Video for 05-02-2024

Gold Markets Technical Analysis

You can see gold got absolutely hammered during the trading session on Friday as traders freaked out about the better than anticipated jobs number. At this point, the bond market is starting to sell off drastically and therefore rates rise and gold falls. That being said, the 50 day EMA underneath should continue to offer support and I think that will be the case going forward. Ultimately, this is a market that still sees a lot of support down at the $2,000 level. So this will end up being a buying opportunity eventually, at least as soon as all the panic traders get out of the market. The uptrend remains for multiple reasons and although we may have to reprice the idea of rate cuts, the geopolitical issues alone may make gold something you want to own at least in part of your portfolio.

Ultimately, it looks like we’re going to chop around between $2,000 and $2075 in the near term, but if we were to break down below the $1,980 level, that would be extraordinarily negative as it would open up the possibility of completely falling apart. And at that point in time, I would probably consider shorting gold but I don’t really have any interest in trying to get too cute with it.

I’m just going to play the overall market that we have, which at this point in time is range bound with more of an upward proclivity. Furthermore, keep in mind the jobs number coming out hotter than anticipated generally causes a short-term reaction that quite often gets reversed. So I will be watching this for signs of strength and taking advantage of that if and when it shows up.

If we were to break above the $2075 level, it’s likely that this becomes more or less a buy and hold market but right now it looks like everybody is in the process of running their programs and throwing the market around without regard to anything beyond the next two or three minutes.

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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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