Gold has a rough general tendency to decline during the week leading up to the release of the US Employment Situation Report (jobs report). Following the release of that report (Friday at 8:30AM), gold tends to begin a decent minor or intermediate trend rally. Gold has exhibited this trading pattern for quite some time. It is likely to continue to do so, for the foreseeable future. Please click here now. On this two hour bars chart for gold, I’ve highlighted the gold price action during the week leading up to the release of the August 1st jobs report. The minor trend decline is clear. Please click here now. Here, I’ve highlighted the nice rally that began following the release of that report. The minor trend strength of the rally is clear. To view the current gold price action, please click here now. The next jobs report is only a few days away, and gold is exhibiting a typical minor decline leading up to the release of the report. The minor trend decline is clear. It’s important that the Western gold community doesn’t confuse the jobs report trading pattern for gold, with the big picture for gold. The jobs report moves the price of gold in isolation from the big picture, and does so in a very minor way. Amateur investors that use leverage to invest in gold, will easily be frightened by the price action created by night time liquidity flows from funds and banks on the COMEX, particularly as the jobs report approaches. Many of the gold market sell-offs that precede the jobs report tend to begin around 2AM – 4AM New York time. Some gold community analysts have suggested that this is market manipulation that regulators should investigate on a trade by trade basis.
This post was published at GoldSeek on 2 September 2014.
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