- The gold markets rallied quite nicely during the early part of the session on Friday as the non-farm payroll number came out much weaker than anticipated.
- This had the US dollar selling off and of course the odds of interest rate cuts spiking.
- This is a good thing for gold as you can see, and we have since broken out of the inner consolidation area that we had been in previously, but right now I don't see that we have the momentum to break above the $3,500 level.
- So that is a barrier that I think will continue to be extraordinarily difficult to deal with.
On a Break Higher
If we were to break above $3,500, then you can take a measured move of the $300 range we have been in and expect, hopefully at least, that markets go looking to the $3,800 level.
Top Regulated Brokers
Short-term pullbacks are possible and it's possible also that those short-term pullbacks offer buying opportunities. The 50-day EMA is offering a certain amount of support near the $3,333 level. And with that being the case, I think we've got a scenario where traders are just looking at this, trying to determine whether anything matters and I suspect it doesn't.
We are stuck in the summer range and until we get volume pushing this thing out, I just don't really have a whole lot to do with this. I think you've got a situation where we are looking for some type of reason to get moving. Volume would be a great thing, we just don't have it as we're heading into August, I would anticipate more sideways and choppy action more than anything else, essentially doing the same thing that we have for a while now.
Ultimately, I like gold, but I also recognize that there aren’t enough traders out there to move things.
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