Gold Forecast: Gold Launches Higher After Jobs Report

The gold market has rallied significantly during the trading session on Friday, signaling the possibility of a "double bottom" forming at the 200-Day EMA. While the job number may or may not have had an impact on the market, multiple factors are likely to move the markets, most specifically the US dollar.

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It's important to keep in mind that the gold market and the US dollar tend to have negative correlations, but they don't necessarily always trade that way. Interest rates going up and down can also create volatility in the gold market. However, the current candlestick is very bullish, and if the market rallies from here, the focus will be on the $1900 level, an area where we have seen a lot of selling pressure previously.

On the downside, the 200-Day EMA is likely to offer significant support, as we have bounced hard from there, and it is backed up by the $1800 level. It could be a short-term bottom, but there are also questions about whether the US dollar is done rallying, which could resist the gold market. It will be important to pay attention to interest rates and the US dollar at the same time. If they both go positive, will the course be very negative for gold. However, if it’s a flight to safety, the US dollar can pick up momentum while gold remains tough.

Market Looks Bullish

• In the short term, the gold market looks bullish, and buyers are likely to become more aggressive.
• However, it's important to keep in mind that the action after a Non-Farm Payroll announcement tends to be very noisy and sometimes nonsensical.
• Traders often look at the market through the weekend and come to a completely different conclusion. Therefore, it's possible that Monday could see a bit of a pullback.

The gold market has rallied significantly during the trading session on Friday, signaling the possibility of a "double bottom" forming at the 200-Day EMA. While the US dollar and interest rates can create volatility in the gold market, the current candlestick is very bullish. The focus will be on the $1900 level if the market rallies from here. However, it's important to keep in mind that the action after a Non-Farm Payroll announcement tends to be very noisy and sometimes nonsensical, and traders often come to a different conclusion after the weekend.