Gold Surges Above 200-Day EMA as Disappointing NFP Drives Fed Cut Bets

Gold Technical Analysis

The gold market has shot straight up in the air during the early part of the trading session here on Friday as the jobs numbers in the United States came out negative 28,000 instead of the expected addition of just a bit over 80,000. This has the U.S. dollar on its back foot, and of course, traders are starting to already think about the Federal Reserve having to loosen monetary policy. Bets will be shifting towards a looser Fed, and therefore stocks suddenly become a little bit more attractive right along with precious metals. We’re seeing this across the board.

Whether or not this sticks remains to be seen, but so far, it certainly appears as if traders are treating the old bad news is good news behavior as the way to go going forward. We have a while before the end of the session, but right now, this looks like the 200-day EMA offered a little bit of resistance previously, now looks to offer support. We’ll just have to wait and see.

Macro Catalysts and Technical Support

The $4,600 level above was an area of importance previously, so one would wonder whether or not market memory comes into play in that scenario. With that being the case, this market remains one that will be noisy, one that will move on interest rates, and one that will have a lot of external pressures via geopolitics, the U.S. dollar, interest rate markets, and whether or not people want to hold going into the weekend.

It’s a strong start so far. We have definitively broken above the crucial 200-day EMA. Generally speaking, technical traders like that. We’ll see if that holds.

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