Gold Forecast Today 02/05: Plunges To Test Support (Chart)

(MENAFN- Daily Forex)

• Gold markets have been very negative during the day on Thursday, perhaps in reaction to the oversold condition of the US dollar.
• After all, the US dollar was pricing in some type of apocalypse in the United States, and eventually that had to end it.
• With that being the case, the market is offsides, and I suspect that we have a situation where gold just simply had way too much elevation.
• The question now of course is whether or not the momentum will return to this market.

Non-Farm Payroll

Top Forex Brokers1 Get Started 74% of retail CFD accounts lose money

Keep in mind the Friday is Non-Farm Payroll in the United States, and that will more likely than not have a major influence on what happens with the gold market. This is by extension of what happens with the US dollar, which obviously over the longer term tends to have a negative correlation with gold, but it doesn't have to be that way. Ultimately, it's worth noting that the gold market has been overbought for some time, so I think you need to keep that in the back of your mind as well.

EURUSD Chart by TradingView

Ultimately, I do think that gold will eventually recover, but the question at this point in time is going to be whether or not we get an opportunity to buy it on some type of bounce, or if you have to step in and essentially guess as to where the next move is. I anticipate that after 8:30 AM New York time, you might have a little bit more clarity. The Friday candlestick should be important, but even if we do break down from here, I anticipate that the 50 day EMA could come into the picture to offer support as well. With all of this being said, I like the idea of buying on the dip, but I would rather trade this market to the upside on the“right side of the V.” In other words, it makes sense to be a bit patient in this general vicinity.

Ready to trade our Gold daily analysis and predictions ? We've made a list of the best Gold trading platforms worth trading with.

MENAFN02052025000131011023ID1109501540