(MENAFN- Daily Forex)

• The gold market gapped to the upside during the trading session on Friday, but we have since seen a lot of back and forth action.
• While it ends up being a very positive move for the day, the real story is that gold managed to hold its own after the Non-Farm Payroll announcement. The jobs number came out fairly neutral, as there was a little bit that everybody. All things being equal, this is a market that has been very bullish, and the fact that we are finding ourselves going back and forth just above the crucial $3200 level makes a certain amount of sense.

EURUSD Chart by TradingViewTechnical Analysis

The technical analysis for this market is bullish for the longer term, but it is slightly neutral for the last couple of weeks. It makes a certain amount of sense that the $3200 level would be crucial support and of course would attract a lot of attention due to the large figure, and the fact that it has been important in the past. I suspect that we will continue to see the bullish traders out there defend that level, as is rather important.

On the upside, we have the $3400 level, which of course if we can break above there we could go looking to the $3500 level, which was the recent swing high. Underneath current levels, we have the 50 Day EMA near the $3140 level, which of course is rising. In other words, I think there is a lot of support underneath just waiting to happen, but we will have to wait and see how this plays out. Nonetheless, I am a bit hesitant to start shorting this market, it is just too bullish at the moment.

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Keep an eye on geopolitics, because they certainly have been a major driver of gold, but the gold market has been negatively correlated with the stock markets overall, so the fact that we are starting to see the stock markets rally quite nicely does put a little bit of downward pressure in this market. Ultimately, this market will continue to favor the upside, but you may be able to buy gold at a better price.

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