Gold Price Forecast: Gold Testing Major Confluence

Daily Forex, this is Christopher Lewis taking a look at the gold market. 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. 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 offer some people a little bit of value that they would like, but if we were to break down below the $4,000 level, then that could really tear this market apart. But as things stand right now, this is a market that still has a lot of things to pay attention to. Not only the interest rate situation, but the headlines coming out of the Middle East, which is one of the biggest uh movers. The bigger movers, of course, will be uh 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.