Gold Tests 50-Day EMA as Strong US Jobs Data Lifts Rates

Gold Technical Analysis

The gold market initially tried to continue its elevated behavior, but the jobs market in the United States continues to be robust. We have had a print of 162,000 jobs added, and that sent rates higher. They have since calmed down a little bit, but the gold market has faced some damage as a result.

Monday is a holiday, and therefore, the trading hours in the futures market might be a little busted up. We’ll have to look at the calendar, but it does tend to cause some problems with liquidity. Sometime early in the afternoon, just after noon, the United States markets will close, so be aware of that.

50-Day EMA Support and Labor Day Liquidity

The market right now finds itself just above the crucial 50-day EMA, and whether or not that holds as support, we’ll have to wait and see. My suspicion is there is probably somewhat of a lack of volume in the US right now anyways. It’s not uncommon for people to take 4-day holidays for Labor Day weekend, so couple that with a jobs number that caught everybody off guard, it wouldn’t surprise me to see a real reaction on Monday, heading into Tuesday once traders come back to work in the Asian session, and then probably build up a little bit as we go into New York on Tuesday.

As things stand right now, not much has changed. We’re just in the same consolidation we were in just a couple of weeks ago. Longer term, I still like gold, but I recognize that higher rates for longer is a recipe for trouble.

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