Gold has incrementally climbed from its lows displayed this past Friday and this Monday as choppy trading suggests support may be durable.
Gold is trading near the 1883.00 prices as of this writing. On Friday of last week, the precious metal fell below the 1860.00 ratio which had last been seen on the 6th of January. On Thursday of last week before falling like a stone, Gold was flirting with the 1960.00 level. The loss of nearly 100.00 USD per ounce in value of Gold within one trading day likely hurt speculators caught on the wrong side of the violence.
The ability of Gold to touch a high around 1960.00 on Thursday of last week had not been seen since April of 2022. The sudden downturn in the price of Gold started late Thursday, and by Friday the precious metal seemed to be comfortably resting near the 1914.00 level. However the ‘shock’ result in the U.S Non-Farm Employment Change numbers acted like a bomb in the broad financial markets as U.S hiring came in with a stronger than expected number.
Gold is trading in an Opposite Manner to the USD
The price velocity seen in Gold downward correlated directly to the USD strength displayed on Friday of last week. Some technical traders may not want to hear about it, but the sudden bullish move in the USD late last week, and its continued burst higher in value on Monday is hard to dispute regarding the results in the Gold market downward. Monday’s values were mixed, but they did test Friday’s lower values.
- Intriguingly, speculators may now use the rather consolidated trading in the USD and its slight reversal lower as evidence Gold can regain some of its value. The price of Gold is now trading at nearly 23.00 USD more per ounce today compared to early this week.
- Today and tomorrow are likely to produce more choppy conditions and behavioral sentiment and technical trading will rule, this is because there is no major economic data coming from the U.S. today and tomorrow.
Consolidation from the last Couple of Days could Suddenly Fade away in Gold
The price of Gold can move extremely fast, which was certainly on display late last week. The consolidation which has emerged the past couple of days may allow for a calmer Gold market, but traders should not be fooled. Risk management will continue to prove essential. Speculators who have been pursuing the upwards climb in Gold since early November may continue to feel attracted to the buying side, but should remain realistic.
Gold Short-Term Outlook:
Current Resistance: 1887.00
Current Support: 1876.00
High Target: 1899.00
Low Target: 1867.00
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