- Gold has been very active on Friday as we initially started to rally and then reacted to the non-farm payroll announcement, sending gold much higher.
- But now we have since given back quite a few of the gains.
- As I switched to the hourly chart, you can see that we had spiked to a new all-time high and have since pulled back, essentially getting to the point where we are barely positive for the session in the middle of the afternoon.
Whether or not that remains the case, I don't know, but I do recognize that there are a couple of levels worth paying close attention to here. Number one, we have to pay attention to the $2,900 level above. I think that continues to be a major resistance barrier and if we can clear it then the market could really start to take off perhaps heading to the 3000 level. On the other hand, if the market were to fall from here pretty significantly somewhere near the $2,800 level, I would expect buyers to come back in and pick the market up.
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I do think that it is probably only a matter of time before we find buyers in this market, but really, I don't want to short the market. Even if you told me that Monday was going to see a $50 drop in gold, I wouldn't even take that trading. I would be willing to pick it up on that pullback at a lower price. That's essentially how I'm trading in this market. I think there are a lot of questions right now about the global economy and the jobs number in America really didn't do much to quell those concerns due to the fact that the headline number of course was lower than anticipated, but a lot of the internals look pretty hawkish for the Fed. So, confusion reigns. But in this environment, I think just buying pullbacks continues to work.
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