The big decision in gold
|Nonfarm Payrolls (NFP) in the United States increased by 531,000 in October, according to figures released by the US Bureau of Labor Statistics on Friday. This result was higher than the market’s forecast of 425,000. In addition, the September print was raised up to 312,000 from 194,000. According to the publication’s further statistics, the unemployment rate fell to 4.6% from 4.8% in September, contrary to experts’ forecast of 4.7%. Furthermore, the Labor Force Participation Rate stayed constant at 61.6%, and wage inflation measured by Average Hourly Earnings, grew 4.9% yearly, compared to 4.6% in September.
The first release of data had no effect on gold and silver prices as usual, but gold and silver reacted positively to the data, closing above $1,815 on a weekly basis. The successive close above $1,815 on Friday, opened the door for gold prices for $1,825-$1,835, which is a calculated big number. In last week’s report, the weekly support was listed as $1,750-$1,760, and the low developed at $1,758.80. The first weekly resistance was listed as $1,810-$1,815, and the high was developed at $1,817 in the final hour to close above $1,815 was $1,817. It has been discussed numerous times that higher inflation and a weaker dollar are positive for gold and silver prices; however, rising cryptocurrency demand should have little impact on the precious value of precious metals. After the NFP report, the US dollar hit massive resistance and began to fall.
A very old chart shown to premium members presents that gold prices bottomed at $1,680 on the diverged cycle of March 10th, 2021, and are now rising. It has been stated numerous times that another bottom is expected to form in the months of October or November 2021, with the ideal spot being $1,700-$1,725. The low was formed on September 29-30 at $1,722, and prices are rising in October. Certain parameters must be considered due to the current market environment. Price prediction is a distinct concept, while confirmation on technical charts is a distinct aspect. This article will focus on a few technical charts to illustrate the development of potential gold price movements in the coming weeks and months.
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