Gold Price Analysis – Gold Clears $4,600 Resistance as Golden Cross Emerges

Gold

The gold market has rallied early during the trading session here on Friday as we are reaching above the $4,600 level, and that for me is a big deal. Now, we’ll have to see how it closes into the weekend, but as things stand right now, it certainly looks as if the market is strong, and short-term pullbacks look potentially like buying opportunities. But again, we’ll just have to wait and see how that plays out.

The gold market is being heavily influenced by a weakening US dollar, and by interest rates in America starting to ease a bit or at least stay in a tight band. Rates are elevated, though, and one has to wonder whether or not another shock in the Middle East might send them spiking, thereby sending gold back down. We are starting to come back to some historical norm correlation type trading. So maybe, just maybe, we’re back to that original safety trade, anti-US dollar trade in the gold market.

Golden Cross and Key Technical Support

We are getting ready to see the 50-day EMA cross above the 200-day EMA, kicking off the so-called golden cross. And therefore, some longer-term traders will be looking to get involved as well. I certainly don’t want to be short of the gold market. But at this point in time, maybe finding a bit of value might be how I approach this heading into the weekend. We’ll see how traders feel about it, because a lot of times the close on Friday can tell you a story.

The short-term $4,500 support level, though, that’s an area I’d be watching on pullbacks. I think that’s an area that might interest me. But the breaking of the $4,600 level for me was a good sign. That was a little bit of a zone being cleared from back in May. Gold remains bullish in the short term. Longer term, we’re heading into an area of recent consolidation.