Gold Technical Analysis
Gold markets gapped higher to kick the Wednesday session off. At this point in time, the market is one that I’m watching very closely because interest rates are drifting sideways as the market gaps to the upside, bouncing off a major trend line. All things being equal, this is a market that more likely than not will continue to be a noisy one, as there are so many moving pieces when it comes to influence.
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See all Gold forecastsThe demand area underneath continues to be an area that I watch as well. With interest rates being so elevated, it does work against the value of gold. But quite frankly, this is a market that, no matter how you slice it, is a little oversold in the short term.
We do have a lot of economic announcements to pay attention to. The first one would be the PCE numbers on Wednesday, but we also have the jobs number coming out on Friday, which could give us an idea of whether inflation is going to rise or fall. It’s hard to tell at this point in time.
PCE a Little Weaker Than Anticipated
For what it’s worth, the PCE numbers did come in a little lower than anticipated, but GDP is hotter. So whether or not that makes a difference, we’ll just have to wait and see. But it certainly looks like we’re at least trying to recover.
Ultimately, this is a market that I think is still trying to find a bigger move. With this, most traders are looking at this from a short-term perspective more than anything else, as we bounce around between two sideways consolidation areas.
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