Abandon early gains to look stable
Count on a lot of choppy behavior, especially with current job numbers.
Gold markets rallied slightly during Thursday’s trading session to hit the $ 1,780 level, but gave up only part of the gains in order to show signs of exhaustion. There is a lot of resistance above, starting at the $ 1800 level and extending all the way to the 200 day EMA. If we can break above there then things will change quite drastically as we will likely be looking to close the gap above allowing gold to head towards the $ 1,860 level.
On the other hand, on the downside we have the $ 1750 level offering support as we have rebounded from there recently. This being the case, the market should continue to see a lot of interest in this area, not only because it was a recent medium, but also because it was an area that was previously a significant resistance. For this reason, we need to pay special attention to it as it might determine where we go next.
If we continue to hold above this level, it is likely that we will see gold attempt to recover. This would likely coincide with a slight drop in the US dollar, which of course tends to have a slightly negative correlation with the gold market. However, if we were to fall below the $ 1,750 level, we could see that the market is heading for the double dip below the $ 1,680 level. This is one area for me where if we are broken below the market will head towards the $ 1500 level.
The only thing I think you can count on is choppy behavior and of course the number of jobs that come out on Friday will have a huge influence on what happens next not only with the US dollar but again by extension the markets. gold as well as. Also watch out for bonds, as silver starts pouring into bonds, which could take some of the luster from the gold itself. I think it is more likely than not that we will go aside during the session, as Independence Day is a Saturday, and it is likely that we will see traders leaving their terminals quite early during the session.