Gold markets have initially fallen during the course of the week as people were concerned about the idea of the Federal Reserve tapering, but after the jobs number on Friday came out a little lighter than “feared”, that suggests that the market is not going to have to worry about the Federal Reserve tapering. That being the case, the market should continue to see a lot of upward momentum in anything that is not the US dollar, and of course gold is the antithesis of the greenback.

Gold Price Predictions Video 07.06.21

The hammer that ended up being formed for the week of course is very bullish and it does suggest that the market is in more of a “buy on the dip” type of mentality, as we have seen for a while. In fact, now that we have fallen to somewhat retest the downtrend line, gold looks more bullish than ever. Longer-term, it is very likely the gold might go looking towards the 2100 level, but it is not necessarily going to be the easiest trade to take. At this more as an investment than a trade, and whatever you do, do not lever the position too much, because the choppiness could work against you, causing unnecessary losses.

With all this, I like the idea of the market going higher over the longer term, but it is also going to be noisy to say the least. Pay attention to the US dollar, because it will give you a bit of a heads up as to where this market might go next. The fact that we have turned around and showing bullish pressure tells me everything that we need to know.

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire

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