Gold Weekly Price Analysis – Gold Extends Weekly Gains as Weak Thursday Jobs Fuel Cut Bets

Gold Weekly Technical Analysis

The gold market has rallied a bit during the early part of the trading week, and as we head out into the weekend, we have seen an extension of that. That being said, keep in mind also that it was a holiday in the United States and the jobs report came out on Thursday. Speaking of the jobs report, it was weaker than anticipated, and we now have people out there betting that perhaps the Federal Reserve won’t be as tight as people had worried.

With this, I think you’ve got a situation where traders will continue to look at short-term pullbacks as buying opportunities. The $4,000 level is obviously an area that a lot of people will be watching. It’s a large, round, psychologically significant figure. So, as long as we can stay above there, I think we could be in a bit of a consolidation and holding pattern.

Technical Moving Averages and Correction Risks

But if we can break above that 50-week EMA at the $4,253 level, then I think it opens up the possibility of a move to the $4,600 level. If we break down below the $3,900 level, then I think gold has a deeper correction down to $3,500.

That would not surprise me, but right now we’re in the midst of trying to stabilize things, and that’s the first step into making sure that even if we do break down to $3,500, it’s not some type of massive sell-off. You could make an argument, I suppose, for a massive uptrend line that coincides roughly with $3,500 as well, but that would be giving ahead of ourselves.

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