Gold Price Forecast – Gold Markets Get Hammered After Jobs Data

Christopher Lewis
Published: Dec 8, 2023, 15:42 UTC

Gold markets have fallen rather significantly to kick off the trading session on Friday after the jobs number in the United States came out a little hotter than anticipated.

Gold bullion, FX Empire

In this article:

Gold Price Predictions Video for 11.12.23

Gold Market Technical Analysis

Gold markets are rapidly approaching a support area, and at this point I think it’s very likely that we find some value hunters out there trying to take a look at the $2000 level as a potential entry. If we do in fact see traders coming back into the market in this area, it will lead to a move to the $2025 level. Obviously, this is a market that has been very noisy over the last several days, and this week has been nothing short of miserable to hang onto. At this juncture, then I start paying close attention to the $2000 level, as it was a significant resistance level in the past, and is of course a large, round, psychologically significant figure.

As things stand right now, we are still hanging around in a consolidation area, which is roughly $50. If we break down below the $2000 level, then we have to start asking questions about the 50-Day EMA indicator, which of course is an indicator that a lot of people pay close attention to. It’s obvious to me that gold is in serious trouble, but that doesn’t necessarily mean that we break through all of the support levels. Quite frankly, we have been driven much higher for quite some time, and whatever anomaly entered the market at the open on Monday clearly has caused some major issues.

If we break down below the 50-Day EMA, then we can begin to have the discussion as to whether or not gold is going to start trending, but right now a lot of this comes down to the bond market. Bond markets seeing higher interest rates will work against gold, but of course the exact opposite is true. Bond yields have been dropping quite drastically, and therefore it has provided quite a bit of interest in gold. In general, this is a market that I think is going to offer a buying opportunity, but we have not seen the proper momentum to make that happen quite yet. This’ll be interesting next week, seeing how things play out.

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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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