Gold Price Forecast – Gold Falls Quite Rapidly on Friday

Gold Markets Technical Analysis

Gold markets were crushed during the early hours on Friday as the jobs number in America came out much hotter than anticipated. That being said, we are close to a massive support level, so it’ll be interesting to see how this reacts. I think there is support extending down to the $2,300 level, and we will continue to pay close attention to that area from everything that I can see with that.

In our minds, we have to look at this through the prism of whether or not we start to see momentum again, because quite frankly, the markets these days run on momentum. And that momentum will continue to favor more of a risk on behavior, I think, except in the case of gold. And that’s because gold is actually protection for profligate borrowing and spending by central banks around the world and of course, geopolitical risk, and we have plenty of that.

So, with this being said, I am watching very closely in this area to see how it closes. And if we get a bit of a bounce, I’d be very interested in buying. If we break down and perhaps, you know, if we break down and go below the $2,280 level, then we may have to reset closer to the $2,150 level. Expect a lot of volatility, but right now, all of a sudden, it looks like we’re in an area that you need to see whether or not we have buyers come in and pick this up.

For a look at all of today’s economic events, check out our economic calendar.