- It’s been a noisy Thursday in gold, which makes sense considering that we have had non-farm payroll numbers come out and they came out hotter than anticipated.
- Now, having said that, the initial reaction of course was absolute bedlam. You can see a 15 minute candle that lost $40, but we have since bounced to end up forming a little bit more of a reasonable day.
- Now, while I would probably be fairly quick to buy this pullback, the catch here is that the markets close at noon in Chicago on Thursday, which is about 90 minutes from now.
But at the end of the day, most of the volume is gone. And that might have been part of why we dropped $40 in 15 minutes. Friday will only be half of a day as well so that Asians and Europeans can conduct business but really Americans won’t be involved.
Higher, but Not Immediately
So, I think we have a situation where the market eventually will probably go higher. But I think you also have to be cautious over the next couple of days. You could get pulled into a position that maybe you don’t want to be in. Now on Monday, things will change. We’ll go back to normal. And I do think that the buyers will be looking to get involved. The US dollar is taking a bit of a hit, although it recovered a bit on Thursday. The overall trend is still rather strong against the dollar.
So, I do think gold eventually gets a bid. We are currently going sideways between $3,200 and $3,500. And as we are basically right dead in the middle, we’re at about fair value. There isn’t a whole lot of business to conduct here if you don’t want to basically flip a coin. I like dips. I buy dips. I also buy breakouts about $3,500, which probably won’t happen very quickly.
Ready to trade our Gold forecast? We’ve shortlisted the most trusted Gold brokers in the industry for you.
Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.
