- Gold bulls eye a meanwhile correction from trendline support.
- Bullish inverse head and shoulders could be in the making.
Gold was headed for its best weekly gain since April by Thursday on the back of the dovish sentiment surrounding the Federal Reserve. However, those gains were wiped out following the strong Nonfarm Payrolls numbers on Friday. which showed U.S. employers added a seasonally adjusted 339K jobs, far more than expected. This has raised the prospect of further interest rate rises and Gold has reacted as follows:
Gold, weekly chart
From a weekly perspective, the price could be on the verge of a break of a support structure, but a meanwhile bullish correction could be on the cards also.
Gold, daily chart
From a daily perspective, the inverse head and shoulders that could be forming would be a bullish feature on the charts also. The right-hand shoulder is aligned with the trendline support. Additionally, from a 4-hour perspective, the price is carving out an M-formation:
Gold, H4 chart
The eclipsed section was the move that was telegraphed in last week´s pre-open article. The market has since been edging lower and sideways to the backside of the prior bearish trendline. This too offers a meanwhile bullish outlook for the days ahead.
