The gold market continues to see a lot of external pressure, as the interest rate markets continue to be very noisy. Energy inflation continues to be a massive concern.
Gold
The gold market initially rallied after the jobs report came out during the trading session on Friday, as the United States added 29,000 jobs last month instead of the expected 90,000.
Top Regulated Brokers
That being said, rates fell rather rapidly, but they are now back where they started, basically, and above. So, of course, gold continues to take a little bit of a beating. We are in the top part of the overall consolidation area, and with that, it is likely that we will continue to see a short-term drop, offering some people a little bit of value that they would like.
But as things stand right now, this is a market that still has a lot of things to pay attention to.
If we were to break down below the $4,000 level, then that could really tear this market apart. Not only is there the interest-rate situation, but also the headlines coming out of the Middle East, which is one of the bigger movers.
The bigger mover, of course, will be the ability of countries to take in crude oil and energy. If it ends up being a situation where energy is a problem, then you have energy inflation, central banks will have to tighten, and then gold suffers as a result.
Central banks are a bit hawkish at the moment, so we are seeing a little bit of hesitation. But we're at a major point of inflection right here, and I think traders will be paying close attention to this. This is going to be about interest rates. We're right in an area that should determine where we go for the next several months.
Ready to trade today’s Gold prediction? Here’s a list of some of the best XAU/USD brokers to check out