|Day's range||1,549.30 - 1,561.40|
The chart pattern is pretty clear. Value-seeking buyers have to continue to come in at $57.79 to $55.99 to defend against a steep sell-off. If successful, we could see an eventual move into the short-term retracement zone at $61.41 to $62.35.
Based on Friday’s price action and the close at $1560.30, the direction of the February Comex gold futures contract on Monday is likely to be determined by trader reaction to the minor top at $1564.20.
The selling was revved up late Thursday after the European weather model dropped more than 15 heating degree days from its forecast for the period running from next Tuesday through January 28, NatGasWeather said in a note to clients.
After rallying more than $165 since November, gold is taking a well-deserved breather. A brief pause, then gold should continue to fresh highs and $1700 by March.
S&P; 500 markets ground a bit higher during the trading session on Friday again, as the bullish pressure continues. Quite frankly, as long as the Federal Reserve is willing to play ball, the stock markets will continue to go higher.
Silver markets went back and forth during the trading session in a slightly positive day, as the market has been grinding sideways and killing time. The question now is whether or not the buyers will come in and pick this up.
Gold markets rallied slightly during the trading session on Friday to in the week, showing signs of resiliency yet again. It looks as if we are very comfortable with the bullish uptrend.
Silver markets initially fell during the week but continue to find resiliency, as we are testing the shooting star from the previous week.
Natural gas markets got hammered this week, breaking below the $2.00 level for the first time in ages, and this shows just how oversupplied this market truly is.
The gold fell a bit during the week, but then turned around to show signs of life again. We are above the $1550 level, but also have a shooting star above.
The British pound went back and forth during the course of the week, as we get a lot of push back and forth from both buyers and sellers. The Friday session had a very poor retail sales figure release, and that of course weighed upon the market.
The British pound rallied against during the trading week to break above the 200 week EMA against the Japanese yen. This is a be decidedly “risk on” move, but there is a lot of noise above that will continue to make this messy.
Based on the early price action, the direction of the EUR/USD the rest of the session on Friday is likely to be determined by trader reaction to the 50% level at 1.1110.
The glass of economic data is half full if we estimate the reaction to the macroeconomic data. This applies to both last Friday’s U.S. employment report, and China’s GDP figures released this morning. The published data for the 4th quarter of 2019 showed that the economy slowed down to 30-year lows.
Silver markets initially pulled back during trading on Thursday but have stabilized right around the $18.00 level. That’s a good sign, as we had pulled back for the last several sessions.
The gold markets pulled back slightly during the trading session on Thursday, as we continue to chop back and forth. One thing that should be noticed though is that we have formed a couple of hammers on the way down.
The British pound rallied a bit during the trading session on Thursday in order to break above the gap that had formed at the beginning of the week. Now that that gap has been filled, it becomes a question as to whether or not it will hold.
The Euro rallied a bit during the trading session on Thursday but giveback quite a bit of the gains to show a sluggish reluctance to break towards the top of the overall range.
With significant downside risks to the global economy turned aside, and worries over a possible recession diminishing, there is a sprouting belief supported by evidentiary proof in the data that global growth could gain momentum over the coming months.
If using the 50% levels as your guide then look for an upside bias to develop on a sustained move over $58.80, and for the downside bias to continue on a sustained move under $57.79.