- As you can see, gold initially tried to rally a bit during the session here on Thursday. But we just have a lot of noise.
- And with the Federal Reserve interest rate decision on Wednesday, and the press conference, and then the jobs number on Friday, it's not a huge surprise to see that basically all we've done is made a lot of noise.
- We are within the inner consolidation area that I've been paying close attention to over the last couple of weeks.
But when you look at this chart, you can see that the $3,200 level underneath has been massive support with the $3,500 level above offering massive resistance. I think we're stuck in this $300 range. And I think it would take something pretty massive from the jobs report to make us break out of here.
Long Term I am Still Bullish
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I still believe gold probably goes higher over the longer term because there are so many different moving pieces at the moment that are bullish, but also just typically speaking, consolidation leads to continuation. You might even be able to make an argument for an ascending triangle. So, I like buying dips in gold.
The session on Thursday was a perfect example of this, but you have to be able to make your profit when it does in fact occur. If we can break out above the $3,500 level, then it's likely that the market goes looking at the $3,800 level based on the $300 measured move. But keep in mind that we are heading into August and summertime is pretty quiet. So, you're basically at this point, I think stuck with a situation where you're looking for drops that you can buy, but you also have to keep your expectations in line. The Fed certainly put a beating on gold, but the jobs number coming out hotter than anticipated may as well, at least short term, I'll be looking to buy the right hand side of the V on the bounce.
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