- The gold markets plunged after the jobs number on Friday but have seen buyers jump back into this market as the jobs number caused volatility, but at the end of the day, traders are starting to think that the jobs number doesn’t change much.
- By forming a bit of a hammer, it suggests that the sparkling market is trying to take off to the upside, perhaps continuing a massive recovery.
- At this point, the $1800 level has attracted a lot of attention, but I do think that if we break above here it’s likely that the market is looking to the $1850 level.
On the downside, if we were to break down below the bottom of the candlestick for the trading session, it opens the possibility of a move down to the 50-Day EMA near the $1725 level. The market has been very noisy as of late, but it certainly looks as if we are focusing on a potential selloff in the greenback, so that could make gold live even further.
Gold is Ready to go Higher
Ultimately, we will also have to pay attention to the interest rate market in the United States, as that has a major influence and negative correlations with the gold market. Ultimately, I think it looks as if gold is ready to go higher and it is trying to catch up with silver which has already taken off quite drastically.
The 50-Day EMA would have to be broken to the downside to send this market much lower because the indicators are quite often thought of as a potential support level for longer-term traders. Ultimately, the market had broken above a major downtrend line, so I do think that momentum continues. The fact that we recovered so quickly on Friday also should suggest that there are a lot of buyers willing to hang on to this market heading into the weekend. That is a major sign of confidence in gold, so, I think we are going to see further upside, and perhaps even try to get all the way to the $2000 level before it’s all said and done. Nonetheless, it will remain volatile so you do not have to jump in with big positions, you can wait for pullbacks to take advantage of them like you Saul during the Friday session.
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