Gold bulls conceded defeat after Friday's NFP release [Video]

Carol Harmer Charmer Trading

Gold bulls conceded defeat after Friday's NFP release.

The break below the 200-day moving average, combined with a weekly close beneath this key level, saw even the most stubborn bulls retreat for the hills.

Fueling the move lower was a combination of long liquidation and fresh selling. As the bears roared their success, bulls diving for cover and closing long positions only added to the downside momentum.

So, what now?

The negative tone has prevailed throughout this week, which could signal another bearish weekly close.

The break below the long-term 38.2% Fibonacci retracement, stretching back to the 2022 lows at 4089, is certainly not encouraging for the bulls. However, today is Reversal Thursday, and as traders know, anything can happen.

I believe the bulls have taken enough of a beating this week. The daily charts are beginning to show oversold conditions at relatively low levels. The weekly charts still point lower, although they too are moving into oversold territory. The mighty monthly chart continues to project lower prices, currently sitting around the 50% level.

The key level to watch today is 4132.

If the US session can generate some upward momentum and hold above this area, confidence could return to the market. Should that happen, I would look for a move towards 4322/28 initially, with the potential for higher levels into tomorrow's session.

For me, it all comes down to the 4132 Pivot Point today.

"Will the bulls finally find their footing, or do the bears have one more push lower in store?"

Author

Carol Harmer

Charmer Trading

Carol Harmer has over 39 years experience of analysing and trading the world's markets and is undoubtedly one of the most respected technical trader in the world today.

GBP/USD hits multi-week tops around 1.3560

GBP/USD gathers fresh steam and advances to new three-month peaks near the 1.3560 zone on Friday. Cable’s sharp move higher comes after three daily drops in a row and follows the increasing selling pressure hurting the Greenback.

EUR/USD pops to fresh two-month highs, targets 1.1600

EUR/USD advances markedly, revisiting the upper 1.1500s for the first time since mid-June. The pair’s sharp uptick comes on the back of a strong retracement in the US Dollar amid BoJ intervention chatter and despite steady uncertainty in the Middle East.

Gold picks up pace, approaches $4,400

Gold rebounds toward the $4,400 mark per troy ounce on Friday, reversing the previous day’s pullback. The precious metal’s recovery comes as fresh and intense weakness keep weighing on the US Dollar, while traders keep assessing easing expectations of an imminent Fed interest rate hike and the situation from the Middle East.

Pi Network Price Forecast: PI extends consolidation as bulls eye $0.10

Pi Network (PI) price holds steady on Friday, maintaining a consolidating tone for three consecutive days. Mild retail strength in the PI token remains stable, with Open Interest above $9 million, while social buzz eases. PI token’s technical outlook is mixed, as bearish momentum wanes to neutral, with bulls eyeing the $0.1000 psychological level.

Weekly focus: Some relief in US inflation concerns

Actual inflation data for July came out as expected with a 0.1% m/m increase in headline CPI and 0.2% excluding food and energy. Annual headline inflation remains too high at 3.4% and means that wage earners are experiencing stagnating spending power at best, and core inflation is a bit higher than the inflation target of two percent would suggest.

Why is Crude Oil priced for a reopening the ships haven't made?

Fourteen vessels crossed the Strait of Hormuz on Tuesday. Before the war, the count ran near 120 a day. In the sessions since the waterway was publicly declared open, Brent has drifted back to $87 and West Texas Intermediate (WTI) to $81, both a little lower again on Wednesday, with daily momentum on each unwound from the top of its range in late July to the low twenties now.