Gold Price Outlook – Gold Drops After NFP

Gold Technical Analysis

The gold market has pulled back just a touch during the trading session here on Thursday as we got the jobs number coming out hotter than anticipated. Keep in mind that this is also going to be a strange couple of days in the futures markets as traders will have to deal with the fact that both are half days due to the Independence Day holiday in the United States.

So, with that, liquidity is going to be an issue. But when you look at the overall totality of the market, it doesn’t take a whole lot of imagination to recognize that we are in an uptrend and have been consolidating for a minute in order to work off some of that froth. The $3,200 level on the bottom is support, while the $3,500 level on the top is resistance. We are currently hanging around the 50-day EMA, and that, of course, is an indicator that a lot of people will be paying close attention to. Ultimately, I think you’ve got a situation where people are going to continue to look at this as a market that we are buying on the dip.

We don’t really want to fight too much at this point, but I also recognize that anytime you see a bit of selling pressure, it could be thought of as a potential buying opportunity. A break above the $3,500 level, which I do expect to see eventually, opens up a move to the $3,800 level. If we were to break down below the $32 level, then we could drop to the $3,000 level, which is basically where the 200 day EMA is hanging around. Nonetheless, I don’t have any interest in shorting.

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