US non-Farm payroll data for August released a while ago; came lesser than expected (130k Actual vs 160k Forecast). Another key event to follow is FED Chairman Jerome Powell’s speech later today.
Gold, the most common hedge instrument used by most traders, is rallying near multi-year highs. NFP data led to almost $25 spike in Gold price in a span of 60 minutes taking it from $1500 to $1525, although this sudden spike should stabilize during the day.
From a long term perspective, Gold price has already reached a supply zone from 2012-2013 (earlier period when prices hit the current range). Current upward rally of the precious metal should face resistance soon, possibly at current level. At most prices could rally further to as high as $1600 (round figure, matching the converging upward slope lines from 2019 and the horizontal trend line from 2012-2013 supply area). We should soon see a reversal as depicted by the arrows in weekly chart above. This reversal is expected to initiate anytime from now until say next 1-2 months. Downside margins are seen first at $1400, and then at $1300. Big jumps expected over a course of next few weeks / months.
Can we expect a correction?