Markets

Black Friday May Add Strength to Gold Over Weekend

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Gold prices appear to be ending the week with little change since Monday. While the precious metal climbed over $30 in value by mid-week, the price had tumbled back to $1353 an ounce as of this afternoon.

The trend for Gold appears to remain bullish despite this recent corrective movement. However, we should also note that the retracement experienced since Wednesday could be part of a larger cyclical downturn with take-profit targets at $1340, $1310, and $1280. If holiday shopping picks up over the weekend from Black Friday in the United States, then there is the possibility of a quick rebound in precious metals at the start of next week.

If retail sales enter their holiday upswing, we could see demand for jewelry-linked commodities (Gold, Silver, and Platinum) experience a bullish spike as well. The retracement period on Gold appears to be shrinking, which means the target of $1310 may be the lowest Gold reaches before extending its bullish trend further. Traders may want to keep an eye on retail sales and consumer spending figures emerging from the US during the post-Thanksgiving/pre-Christmas shopping period.

We can see on the chart below that Gold may be entering the final phase of a head-and-shoulders candlestick pattern, with a target around $1310, and perhaps even as low as $1280.

Gold - Daily Chart

Gold - Daily Chart

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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