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Gold Continues to See Volatility
By: Christopher Lewis | February 2, 2024

• The gold markets saw a lot of volatility this past week, especially on Friday after the Non-Farm Payroll numbers came out much more strong than anticipated in the USA.

Gold Markets Weekly Technical Analysis

Looking at the gold weekly chart, gold shot straight up in the air initially during the course of the trading week, but has been sold off. Now, what you don’t see on the weekly chart is this is almost all in reaction to the jobs market or the jobs report on Friday and that of course is a temporary situation. This is an uptrend, so there’s no two ways around it. Therefore, I look at this as a potential buying opportunity here, but I also recognize that the market is going to be very difficult to hang on to. With this being said I look at this as a market that will try to get to 2075, but, really at this point, it’s going to be a very noisy affair. With this, I like the idea of buying each dip.

I like the idea of getting above the 2075$ level sending the market to a situation where buy and hold will work because I think at that point in time we could really start to take off. In fact, we’re already starting to see things turn around as I work on this analysis. That being said, keep in mind that the gold market does tend to be very choppy, and of course will take its cues from the bond market overall. If interest rates start to fall again, then gold should continue to pick up. Furthermore, we have a lot of geopolitical risks out there that could continue to push this market higher as well so there’s no real reason to short gold for a longer-term trade.

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