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

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?"