Gold markets closed above $2,000 after the end of Friday's trading, which was dominated by confusion, after the US employment data, which revealed the worst pace of job addition in two years, as well as an improvement in the unemployment rate, dropping from 3.6% to 3.5%.
Gold futures contracts ended trading at $2023.9 an ounce, while gold spot contracts recorded $2008.01 an ounce. If we look at the low of March, gold managed to rise by $200, while silver rose by $5, making the markets wait for a correction soon.
Economic analyst Vilin Strebel says that those who hold long positions on gold should designate and activate defensive stop-loss options and add long positions in undervalued commodities such as copper and platinum.
Technical analysis of gold
Gold technical analysis shows a successful market breakout of a bull flag pattern. However, without holding above $2050, traders should use any close below $2000 as the first warning sign that a correction may be brewing.
The critical level we are watching is the March 21st low to 1965.9, which is now the first important support. A downside break below 1965.9 signals failure in the near term. Therefore, we will be cautiously optimistic and re-evaluate this move. For those of you who work closely with us, most of you are working below $1955 on a valid until cancellation basis.
