There has been a major turnaround in the gold markets this week, as the Monday open was nothing short of a bloodbath. After all, the market dropped roughly $100 in about 30 minutes as Asian opened. The lack of liquidity as Japan was closed also could have been a major issue. This was in reaction to the spike in interest rates in the US after the jobs report. (Asian traders weren’t at their desks to react.)
However, by the end of the week the market had recovered all of those losses. The important $1680 level in spot gold held, which in hindsight was probably to be expected as we got there so quickly. It appears as if there was a bit of capitulation, which is a good sign as well. And then….just take a look at that hammer. If the market can clear the $1830 level, it is likely to continue going much, much higher. I would refer you to the US Dollar Index, as it shows potential consolidation, as resistance has shown up as well. This could also help gold shine.