With the non-farm employment data to be announced in the USA today, gold investors are eagerly awaiting the levels to focus on. Gold analyst Rajan Dhall reports that this data has several key levels ahead. On the other hand, BubbaTrag strategist Todd Horowitz underlined that the markets are “preparing for a very bad correction”.
Here are the levels to be considered in the gold price according to the analyst
Rajan Dhall stated that in general, the latest data has caused a fair amount of volatility, and today will not be an exception in this regard. This time around 700,000 jobs are expected to be added. Currently, the price of an ounce of gold is around $ 1,783. Goldman Sachs said: “We estimate nonfarm payroll employment data to increase by 750,000 in June. We believe job growth will likely increase further in the month, combined with very strong labor demand, vaccines and continued progress in reopening. We estimate a two-tenth drop in unemployment. This reflects a strong household employment gain, but an increase in the participation rate,” he said.
According to Dhall, the chart below shows that the price has just emerged from the bearish channel pattern. He notes that the high wave at $1,795.6 is a crucial hurdle. Beyond that, if the resistance is broken, the $1,840 level is noted. He stated that the psychological level of $1,800 is a target for the bulls, which combined with the 50% Fibonacci retracement could be key. From a bearish perspective, the analyst explains that the low of the consolidation is held around $1,750, which can be seen as a support. He adds that if the decline continues, levels just below $1,740 could be reached.
Todd Horowitz: There will be a “bad” correction in the stock markets
BubbaTrag chief market strategist Todd Horowitz said stock markets were “overvalued” and needed a “bad fix”. “We are preparing for a very bad correction at some point. I wouldn’t be surprised to see that this correction is greater than 2008, 2009,” he added. From a historical perspective, gold’s precious metal status may gain importance as the strategist expects the correction in the stock markets. This correction could happen even before the Fed raises interest rates, Horwitz said. Cryptocoin. com
As we have previously reported as , after the Fed’s interest rate decisions, there was movement in the gold markets.
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