Gold Shows Weakness Ahead of Key Jobs Data, Analyst Outlines Trading Plan

Deep News57 minutes ago

On Thursday, August 7th, U.S. Treasury yields rose across the board, with the benchmark 10-year yield nearly flat, closing at 4.679%. The policy-sensitive 2-year yield ended at 4.258%. Spot gold saw an initial rise followed by a decline, briefly touching the $4300 mark early in the session—its highest level since June 18th—before giving up all intraday gains to close 0.15% lower at $4240.69 per ounce. Spot silver ultimately closed 0.89% lower at $61.51 per ounce. International oil prices surged sharply, as uncertainties surrounding global energy transportation remain unresolved. WTI crude accelerated its rally during the U.S. session, ultimately closing 4.18% higher at $77.43 per barrel, while Brent crude closed 4.9% higher at $82.77 per barrel.

The gold market opened at $4247.4 per ounce yesterday. The price initially rallied, hitting a daily high of $4304.7 per ounce, before encountering resistance from the 38.2% Fibonacci retracement of the recent decline and the 5-day moving average on the monthly chart, leading to a pullback. The daily low was set at $4222.6 per ounce before the market consolidated. The daily candlestick ultimately closed at $4239.9 per ounce, forming a shooting star pattern with a long upper wick. Following this pattern, gold bulls now face the test of the upcoming non-farm payrolls data.

In summary, after several weeks of consolidation, gold broke upward and now faces its first major test—the non-farm payrolls report. The data's strength or weakness will further influence the price. However, based on the overall technical pattern, the trend remains bullish, with the key support level at $4200. The operational strategy for today is to prioritize buying on dips, with selling on rallies as a secondary approach. Upside resistance is seen at the $4303-$4360 area, while support lies in the $4210-$4190 zone.

The U.S. crude oil market opened at $75.28 per barrel yesterday. The price initially declined, hitting a daily low of $74.71 per barrel, before staging a strong rally that reached a daily high of $78.71 per barrel. After some consolidation, the daily candlestick closed at $78.41 per barrel, forming a large bullish candlestick with a slightly longer lower wick than upper wick. Following this pattern, oil bears are once again facing a test.

In summary, after encountering resistance at higher levels, oil prices experienced a sharp correction. Following a period of low-level consolidation, the market has formed a stabilization pattern near the lows. Today's focus is on the sustainability of the bullish momentum. The strategy is to prioritize buying on dips, with selling on rallies as a secondary approach. Upside resistance is at the $79.6-$82.5 area, with support at the $76.6-$74.4 zone.

The Nasdaq index opened at 29434.29 yesterday. The market initially rallied to a high of 29551.83, before pulling back to a daily low of 29109.88. It then rebounded strongly, reaching a new high of 29565.93 before consolidating. The daily candlestick closed at 29373.52, forming a hammer pattern with a very long lower wick. This pattern suggests an increased probability of further upside testing.

In summary, the Nasdaq has maintained a pattern of rising early in the week and then pulling back, which appears to be forming a five-wave structure. It is currently in what appears to be a fourth-wave correction phase. If the market bottom-fishes today, it is highly likely to challenge previous highs. The strategy is to prioritize buying on dips, with selling on rallies as a secondary approach. Upside resistance is at the 29965-30200 area, with support at the 29300-29000 zone. Of course, the non-farm payrolls data will be a key focus.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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