Gold Price Forecast – Gold markets rally significantly after jobs report

Gold markets have rallied significantly during trading on Friday, slamming into the $1300 level after a weaker than anticipated jobs number, driving down the value of the US dollar against the precious metal. With that being the case we are looking at a major barrier just above, but it was one that’s been broken before so it won’t carry as much validity as previous. The 50 day EMA has been broken, and a gap has been filled yet again. If we can break above the $1300 level, we could be looking at a significant move to the upside.

Price of Gold Video 11.03.19

The weekly chart looks even more bullets, as we have formed a hammer. That of course will attract a lot of attention and therefore suggests that a “buy on the dips” mentality probably prevails in this market currently. This was hinted at by the last couple of very calm and stable trading sessions, after a significant selloff. That being the case, it looks as if the $1275 region is going to be a bit of a floor in the market, so until we break down below there I suspect there is probably more likelihood of buyers coming in than sellers. Obviously, the US dollar will have its influence on this market, but it seems to be softening a bit against many of the world’s largest currencies on Friday after the United States added only 20,000 jobs last month. All things being equal, we should be going higher from here and looking towards the $1325 level.

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