Gold Prices July 9, 2012, Technical

Gold markets fell precipitously during the session on Friday after the US jobs number was weaker than expected, but not quite weak enough to have people believing in the new round of quantitative easing that many in the market wish for. In other words, the Federal Reserve may be a bit on the “stuck” side presently. The economy isn’t running on all cylinders, but it hasn’t fallen drastically enough in order to begin further easing. It is because of this that the gold markets will continue to be very confusing as they will simply be a measure on what traders think the interest rates are going to be in the next few months out of the United States.

With this in mind, we clearly see that the $1650 level needs to be broken to the upside in order to go along for any length of time. We also see that the 1550 level is a bit of support, and would buy support of candles for a very short-term trade at that point it isn’t until we close on the daily chart below the 1500 level that we would consider selling for any length of time.