| | | | Friday’s Jobs Report?
The monthly jobs report is out this morning. We also get an updated unemployment number. With the downside setup in place are we going to extend lower or see more sideways action? Let's dive in a take a look.
Come join me as we dive in and see what’s moving!
Plus, as always, we have stocks popping and dropping so come find out what is moving this morning as I look for stocks and do some live premarket analysis on SPX, SPY, NDX, QQQ, Russell, IWM and other stocks that are potential plays for the day.
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Gold’s Breakout Potential: Safe Haven or Setup for Something Bigger?
Gold is showing signs of life, and for good reason. With the market teetering on the edge of a deeper correction, it’s no surprise that investors are eyeing gold as a potential safe haven.
Historically, gold has acted as a hedge during periods of heightened volatility — but before we crown it the ultimate market protector, there are some key factors to consider.
Currently, gold is hovering near a significant resistance zone. If the market flushes, as it often does during times of uncertainty, gold could see a brief dip before quickly rebounding.
This isn’t just speculation — it’s a pattern we’ve seen before.
Take the August market flush, for example. Gold dropped initially but then turned around and rallied sharply, catching traders off guard.
What makes this situation tricky is the choppy, corrective nature of gold’s recent price action. A cleaner bottom — a decisive move lower followed by a breakout — would provide a stronger technical setup for a sustained rally.
Ideally, I’d like to see gold make one more lower low before taking off. That kind of move would reset the chart, shake out weaker hands, and set the stage for a stronger breakout to new highs.
From a broader perspective, the role of gold as a safe haven remains intact. When inflation spikes, geopolitical risks rise, or the stock market wobbles, gold tends to attract capital.
However, traders need to remember that gold isn’t always a straight-up hedge. There are times when it moves with the market, as we saw during certain periods of the pandemic.
Another factor to watch is how gold behaves relative to other key assets. The U.S. dollar, for example, is approaching resistance levels that could cap its rally. If the dollar reverses lower, it would be a tailwind for gold prices, as a weaker dollar makes gold more attractive to international buyers.
Looking ahead, gold has the potential to climb significantly if it breaks through resistance and holds above key levels. A breakout could target areas well above $2,700 per ounce, potentially making it a standout performer.
But until we see that clean technical move — a lower low followed by a sustained breakout — caution is warranted.
For traders considering a position, timing will be everything. Chasing gold into resistance could result in getting caught in a pullback. Waiting for confirmation of a breakout or a decisive dip into support could offer a better risk-reward profile.
Gold has the potential to shine in the months ahead, but it’s not there yet.
For now, keep an eye on the charts and wait for the setup to align. As always, patience pays in this market.
Today’s Daily Chart Setup: iShares U.S. Medical Devices ETF (IHI)
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