Gold markets fell precipitously on Friday after initially grinding sideways due to the jobs number in America coming out much better than impossible. The $1250 level underneath offered massive support, as one would expect, but now that we have broken down this significantly, it’s possible that we may bounce and the short-term, but I think this throws a lot of doubt into the gold market, as the jobs number was much stronger than anticipated. This means that the Federal Reserve will more than likely continue the rate raising cycle, and it has strengthened the US dollar. That works against the gold markets in general, but as long as we can stay above the $1250 level, there is a bounce possible, and the ability to buy the market still remains.
I prefer short-term trading in this market, and I recognize that the gold markets are a bit oversold as of Friday, but I also recognize that longer-term charts look like they are trying to roll over little bit. If that’s the case, a breakdown below the $1250 level should send this market looking for the $1225 level, and then eventually the $1200 level. I would be very cautious about going long, as I believe there is a significant amount of headwinds when it comes to the gold market now that we have seen this jobs number. One thing I think you can count on is a significant amount of volatility, because quite frankly there are a lot of questions as to where we go next.
Gold Prices Video 07.8.17
This article was originally posted on FX Empire
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