GOLD creates THIS bull signal ahead of NFP

Thanks to record low rates and QE, not to mention increased haven demand, gold has managed to retain most of its recent gains. And now it may have formed a key technical signal that it wants to break new 2020 highs.

Take a look at this daily chart of gold:

Gold daily chart
Source: TradingView and

On Thursday, gold may have ended its recent consolidation phase as the market decided that it wants to go higher. The metal broke above the bear trend of the consolidation formation, creating in the process a large daily bullish engulfing candle.

The engulfing candle more than made up the losses from the day before, thus ending the short term bearish bias.

It is important that gold now holds above Wednesday’s high of ~$1708, which is the first key level of support now. If it doesn’t then the bulls may be in a spot of bother and would be in real trouble should gold go on to break below Thursday’s low at ~$1682.

But if gold does hold the breakout then the bulls may target the liquidity above the recent high of $1747/8 next, with the 127.2% Fibo at ~$1772 being the subsequent target.

The key risk is Friday’s US jobs report. In the event that the non-farm job losses are not as bad as indicated by the ADP and jobless claims data that we have seen in recent weeks, then that could help to support the dollar and undermine gold. But I doubt this would be the case.

If you want to learn how I turn these analysis ideas into actual trade ideas, subscribe to my premium trade signals service.

11 thoughts on “GOLD creates THIS bull signal ahead of NFP”

  1. I truly love your website.. Very nice colors & theme. Did you make this site yourself? Please reply back as I’m wanting to create my own blog and want to learn where you got this from or exactly what the theme is called. Cheers!

  2. An impressive share! I’ve just forwarded this onto a friend who had been conducting a little research on this. And he actually ordered me dinner due to the fact that I stumbled upon it for him… lol. So allow me to reword this…. Thank YOU for the meal!! But yeah, thanx for spending some time to discuss this topic here on your blog.

  3. Thank you for the auspicious writeup. It in fact was a
    amusement account it. Look advanced to far added agreeable from
    you! However, how could we communicate? Everyone loves it when folks come together and share opinions.
    Great website, keep it up! Its such as you learn my thoughts!
    You appear to know a lot about this, such as you wrote the e-book in it or something.
    I think that you can do with a few % to drive the message home a little bit, however other than that,
    this is great blog. A great read. I will certainly be back.

    Also visit my page … Jane

  4. Hmm it appears like your site ate my first comment (it was super long)
    so I guess I’ll just sum it up what I submitted and say, I’m thoroughly enjoying your blog.
    I as well am an aspiring blog writer but I’m still new to the whole thing.
    Do you have any helpful hints for rookie blog writers? I’d certainly appreciate it.

    adreamoftrains webhosting

    1. Fawad Razaqzada

      Hi – sorry I just saw this, and thanks for your kind feedback. I think if you provide good content and share it in the right social media channels, you will get somewhere! GL!

Leave a Comment

Your email address will not be published. Required fields are marked *