Gold Markets Weekly Technical Analysis
The gold market initially rallied during the trading week, but we have given back a little bit. And now on Friday, we’ve got a better than anticipated jobs number. This, to me, looks like a market that is getting ready to hang around and just chop between the $3,200 level below and the $3,500 level above. Ultimately, I think we’ve got a scenario where traders are just simply trying to figure out what to do next, probably trying to work off a lot of froth. Ultimately, I do think that we go higher. I do think that eventually we get some type of momentum to break above the $3,500 level and possibly open up a move to the $3,800 level.
However, having said that, I don’t necessarily think it’s going to be the easiest move in the world. $3,200 should be a powerful support level, but even if we break down below there and go look into the $3,000 level, I don’t know that things have changed that much. After all, we have a scenario where there is plenty of geopolitical risk out there. And of course, there’s the possibility that central banks around the world will have to continue to cut.
