Gold Forecast 06/07: Holiday Technical Illusion (Video)

(MENAFN- Daily Forex) The gold market has rallied on Friday, but it is also a holiday, so liquidity could be an issue.

Gold

The gold market has rallied a bit during the trading session here on Friday, but keep in mind that the market is likely to continue to see a bit of hesitation as traders bounce from the $4,000 level. The $4,000 level is a large, round, psychologically significant figure and an area that I think a lot of people will be looking at as a potential floor.

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That being said, keep in mind that it is a holiday in the United States, as traders are looking at this through the prism of thin liquidity and, of course, shorter trading hours. So, I don't read too much into the fact that we're bouncing from here. I think it's a technical bounce more than anything else, and I'll be looking to short gold, at least in the time being.

Weak US Jobs Report Fails to Subdue Dollar Strength

I think longer-term, I like gold, but I don't know that we've seen the end of the US dollar strength. It did sell off during the trading session on Thursday, the US dollar that is, as the jobs report came out weaker than anticipated, but at the end of the day, there are a lot of different things going on that can move the dollar, and quite frankly, that would not be the first time that we got a weak jobs report only to see it turn right back around.

EURUSD Chart by TradingView

With this, I'm looking to see if we get any type of exhaustion on Monday, and I probably won't trade until the end of the day on Monday to see how we truly behave. But if we form something like a shooting star or just a weak-looking candle in general, I probably start looking for short-term selling opportunities at that point. I don't think we'll bust through $4,000 easily, but if we break down below the $3,900 level, then it opens up a move to the $3,500 level.

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