With the latest job numbers, most banks are still holding/buying more of these safe-haven assets over cryptocurrencies since 'poor' economic outlook makes gold seem more attractive. Institutions might actually be betting on a slowing economy in the US as jobs have missed expectations for the past four weeks.
Gold looks like it's worth much more than it's priced at right now. Gold's price went over $1,800 in 2020 back when inflation was low along with interest rates. Now, we are expecting 5.5% inflation to set in which almost seems like a steal when up against the US dollar. Long term, gold looks bullish, especially in the $1,700s, and for the rest of this week at least, it looks bullish as well. But what we need to look out for is jobs data. Jobs numbers are key to telling whether the price of gold will continue to rise, or if this is just a bounce setting up for short positions.
Gold on the 4H retraced with US equities markets after touching on a higher high. Now gold can either bounce or cross under support, and if gold decides to do that, it could test the resistance zone ranging from around $1,803 and $1,818. Higher lows and highs on this timeframe is looking like the beginning of an upward channel.
Another look at gold from the 1H timeframe makes the potential channel look a little clearer. Price bounced on support in the low 1790s and is already working its way back up. A higher high would be promising for the bulls, however, a cross under support could take price down to the low $1780s before finding some clear support.
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