The gold markets got a huge boost during the trading session on Thursday to reach towards $1800 level yet again. That being said, we continue to see a lot of resistance in this area as the market is pulling back from there late in the day. The 200 day EMA itself is an indicator that a lot of people pay close attention to, so it should not be a huge surprise that we have seen a bit of resistance. Furthermore, we also have the downtrend line that I have marked on the chart that has been so important for a while. That being said, it looks as if the trend remains, so therefore I think the Friday session is going to be interesting to watch, due to the fact that we have seen so much in the way of resistance, but we also of course have the jobs number coming out.
Speaking of the jobs number, this has a major influence on what happens with the US dollar, and then by extension the gold market itself. One thing that I think you can take away from this chart is that it is a massive amount of noise is being found in this area, so if you are a short-term trader, you will more than likely be able to continue going back and forth on short-term charts. At this point, the $1750 level should be supportive, while the $1810 level should be resistance.
On a break above the $1810 level, then it is likely that we could go looking towards the $1835 level. If the $1835 level was to be broken to the upside, then this is a market that could really take off. On the other hand, if we were to turn around a break down below the $1750 level, then it would be a massive negative sign. At this point, the market more than likely would go rushing towards the $1700 level, which of course has been important more than once. Anything below there would represent a catastrophic move for gold. Overall though, this is a market that has been very choppy as of late, so I do not necessarily think that anything has changed over the last couple of sessions. The market continues to look for some type of longer-term direction, and it still suggests that we are more likely than not to go lower, although I would not put a huge amount of money into any particular trade.
