Category: Gold News, News

Gold Forecast Today – 05/02: Gets Hammered After NFP Numbers

Gold prices dip after strong NFP data, yet retain support near ,000. Market fluctuates within ,000-,075 range, indicating potential recovery and upward bias.

  • The gold market witnessed a significant downturn during Friday’s trading session, triggered by the unexpectedly robust jobs report from the United States.
  • This abrupt movement, however, is likely a temporary reaction rather than a lasting trend.

Gold prices were severely affected on Friday, as traders reacted nervously to the better-than-expected jobs report. The bond market’s notable sell-off led to rising interest rates, which, in turn, had a negative impact on gold. Despite this, the 50-day Exponential Moving Average (EMA) is poised to continue offering support, and this is expected to persist in the foreseeable future.

In essence, the market still exhibits substantial support around the $2,000 level, which implies that this setback could eventually present an opportunity for buyers. The current turmoil may subside as panic-driven traders exit the market. Several factors continue to support the upward trajectory of gold prices, including geopolitical concerns, making gold an attractive asset for inclusion in investment portfolios.

For the time being, it appears that gold will fluctuate within a range, primarily between $2,000 and $2,075. A decisive drop below the $1,980 mark would carry strongly negative implications, potentially leading to a more significant downturn. In such a scenario, there might be a case for shorting gold, but until then, a cautious approach is recommended.

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The prevailing sentiment in the market suggests that it is currently range-bound with a tendency toward an upward bias. Additionally, it is important to note that when jobs numbers exceed expectations, they often elicit short-term reactions that are subsequently reversed. Therefore, it is prudent to keep a close eye on the market for signs of strength, and to act accordingly if and when they manifest.

Breaking above the $2,075 threshold could transform the market into a more long-term, buy-and-hold scenario. At present, it appears that market participants are driven by short-term considerations, often without regard for anything beyond the immediate minutes.

In the end, the recent downturn in gold prices was prompted by the unexpected jobs report from the United States. However, this is likely to be a transient event, and the market is expected to regain its footing. Gold remains an attractive asset, supported by various factors, and the $2,000 level continues to provide crucial support. While short-term fluctuations may persist, the overarching sentiment leans toward an upward bias, and investors should remain vigilant for signs of strength in the market.

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Written by : Editorial team of BIPNs

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