Gold Price Analysis – Gold Clings to $4,000 Floor Facing Heavy Moving Average Resistance

Gold Technical Analysis

The gold market fell initially to kick off the trading session on Tuesday to fill the gap from the Monday session but then turned around to show signs of life. The gold market continues to be noisy in general, and I do think we have to look at this through the prism of a market that has recently defined the $4,000 level as significant support. The question at this point in time is whether or not we can continue to go to the upside.

Technical Moving Averages and Death Cross Risk

The 200-day EMA is at the $4,344 level and dropping, with the 50-day EMA above it also dropping, perhaps kicking off the so-called death cross. We’ll have to wait and see, but the one thing looking at this chart tells you is that there’s a very high potential that the area could be a resistance based on historical price action and, of course, those moving averages. All things considered, I still believe there is a lot of overhead pressure, especially if the interest rates in America continue to be elevated and the US dollar continues to take off. If that ends up being the case, then signs of exhaustion are potential selling opportunities.

You have to keep in mind that there are a lot of concerns out there right now, and that does tend to help gold longer-term. But right now, we’re just trying to determine whether or not we can even keep the uptrend going. We would need to clear the 200-day EMA to the upside for technical purists to get excited. After that massive run that we had seen, a drop to the $3,500 level, despite the fact that it would be somewhat scary, truthfully, looks pretty normal. So I’m still a bit suspicious about the short-term trend. Longer-term, I do think we go higher, but I think we’ve got a lot of noisy times ahead of us, though.

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