As I have noted for many years, gold has a rough general tendency to decline ahead of the US jobs report, and then rally in the hours and/or days following the release of the report. The next monthly jobs report will be released at 8:30AM on Friday. This report and the closure of the Chinese gold market for the New Year’s holiday should be quite negative for gold, but… The sell-off from the $1220 area is orderly, and gold feels firm. Please click here now. Double-click to enlarge. Gold did break down from a small double top pattern. The price target of the pattern is $1170, but there may be an uptrend channel forming. I’ve highlighted that in blue. Also, the lead line of the 14,7,7 Stochastics series oscillator that I use exclusively on daily bar and candlestick charts is now sitting at about 50, where momentum-based rallies can occur. With China offline and the jobs report dead ahead, why is gold acting so firmly?Well, please click here now. Double-click to enlarge. The US dollar looks very weak on this daily bars chart against the Swiss Franc. It’s broken down from a head and shoulders top pattern, and has not rallied since arriving at technical support yesterday. The rally could still happen, and that would likely push gold down to $1170 ahead of the jobs report.
This post was published at GoldSeek on 31 January 2017.
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