Gold Markets Weekly Technical Analysis
The gold market initially pulled back just a bit during the early part of the week only to turn around and show signs of strength again. At this point, it looks like the $2,600 level underneath is a bit of a floor, while the $2,700 level continues to cause headaches.
With all of that being said, I think we’re just simply going sideways, trying to kill off some of their momentum as we had shot straight up in the air for a while. And I think ultimately, this is a situation where you are looking at a market that’s trying to catch its breath after a huge run higher. And as long as we can stay above the $2,600 level, I don’t know if that much will change.
Keep in mind that interest rates, of course, are going to be crucial to pay close attention to. With that, I think we have a scenario where you have to believe this is a market that will eventually break to the upside. There are plenty of reasons for gold to do so. But right now, I think it’s still just trying to find out where to go.
We ended the week with a stronger than anticipated jobs number, which oddly enough did not push gold down, which would have been the expected move on my part, but we still haven’t broken out, so I don’t know that much has changed. I do like buying dips. I recognize from a longer term standpoint we’re in an uptrend, and I just don’t see that changing anytime soon.
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