Gold markets had initially pulled back a bit during the trading session on Friday, but then turned around and rallied after the jobs number came out. That being said, the range was very tight and therefore it looks a lot like the results of a poor jobs number was already baked into the price. After all, the 701,000 jobs lost was seven times worse than anticipated. The fact that the markets barely moved in general suggests that Wall Street was already looking for that type of blowout figure. Looking at the chart, I see plenty of resistance above near the $1700 level. If we can break above that level, then the market is likely to continue the longer-term uptrend.
Gold Price Predictions Video 06.04.20
If we can break above the $1700 level, it’s likely that the market then goes towards the $1800 level next, followed by the $2000 level. With central banks around the world flooding the market with cheap currency, one would think that sooner or later gold should take off to the upside. With that being the case, it’s also worth noting that the most recent pullback was quite a bit shallower than the previous one and also bounced at the 50 day EMA. The candlestick is closing towards the top of the range for the Friday session, so this tells me there is probably more likely going to be some pressure to continue the move. Whether or not we can break above the $1700 level could be an entirely different story, but at this point it certainly looks as if we are trying to get up there to find out.
This article was originally posted on FX Empire
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