Gold Price Forecast – Gold Markets Recover After Jobs NumberGold markets initially fell during the trading session on Friday to reach down towards the crucial $1850 level but have seen the market turn right back around to show signs of strength.
Gold markets have initially fallen during the trading session on Monday to reach down towards the crucial $1850 level, before recovering due to the reaction from the jobs number that came in at 559,000 jobs added for the month, much less than the “whisper number” of 1 million added. Because of this, people are starting to walk away from the idea of the Federal Reserve talking about tapering, and therefore the US dollar got hit as a result. This of course will help gold as it tends to run counter. Furthermore, if there are concerns about inflation going forward, gold will also get a bit of a boost.
Gold Price Predictions Video 07.06.21
From a technical analysis standpoint, it is obvious that we have broken out above a major barrier in the form of $1850, and of course the major downtrend line that we have formed. By doing so, it suggests that we are going to go higher, and the Friday candlestick of course will add more credence to that idea. By breaking above the highs of the candlesticks from earlier in the week, that could allow this market to go looking towards the $1950 level, possibly even as high as the $2100 over the longer term.
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To the downside, I believe that the downtrend line and the 50 day EMA both come into the picture for a bit of a floor in this market as we continue to see gold try to break the overall downtrend that it has been in for months until recently. At this point, I have no interest in shorting this market and look at dips as a potential value play.
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