Gold markets initially fell during the week to reach the 50-Week Exponential Moving Average, only to turn around and show signs of vitality once more. Ultimately, I believe that this market will attempt to take off to the upside, possibly reaching $1,900. The presence of multiple inverted hammers at the $1900 level, at least on the daily charts, is noteworthy. I believe that will be a difficult level to surpass, but if we do, we will have the opportunity to reach $1975 per share.
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Alternatively, if the price reverses direction and breaks below the weekly candlestick’s bottom, then there is a chance of a move down to the $1800 level initially, followed by the $1750 level, where the 61.8% Fibonacci level is currently set. The 200-Week EMA is approaching that area, so if we do experience a sell-off, I believe it will serve as the market’s “floor.”
Based on the weekly candlestick, I believe it is more likely than not that we will rise in the near future, perhaps for the next week or two. Pay close attention to the U.S. dollar, as it has a negative correlation with gold, but you must also pay attention to the interest rate markets, as the higher rates rise, the more likely it is that gold will decline, and vice versa. All things being equal, this market appears to be attempting to advance since the Non-Farm Payrolls report sent gold soaring during the Friday session.