Gold markets have fallen a bit during the trading session on Wednesday as we are threatening to break down below the $1720 level, and therefore the market is likely to continue seeing a lot of noisy behavior. I would not be surprised at all to see a little bit of a bounce as we are heading toward the jobs number on Friday, which of course will cause quite a bit of chaos in the markets.
Pay close attention to the bond markets, because of yield start to rally again, then it’s likely that the gold markets will suffer. We pray to her fresh, new low, it’s worth noting that it would be a break of a major support level from the longer-term charts, that could open up a drop all the way down to the $1500 level. It does make a certain amount of sense that we would see a massive flush. That will almost certainly be down to the jobs number and what people believe that the Federal Reserve is going to do.
Be Cautious Until Monday
- At this point, if we do rally, I believe that the 50-Day EMA could offer a bit of dynamic resistance, followed by the $1800 level.
- The $1800 level was previous support, so a certain amount of noisy behavior would be expected in that area, and I think it’ll be difficult to get above there.
- The market should continue to be very noisy in general between now and the jobs number, and then after the jobs number, I would anticipate seeing even more noise.
I will probably avoid this market until we get to Monday, because not only will we have a lot of hesitation between now and the jobs number, but then the volatility will be all over the place. I anticipate that the market is likely to continue seeing jitters, and I think that once we get to the end of the day on Friday, the truth will come out. After all, whether people are willing to hold gold over the weekend speaks volumes. At this point, I think any short-term rally must be looked at with suspicion at best. Overall, this is a market that has a lot to think about over the next few sessions.
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