Gold Price Analysis – Gold Consolidates as Looming Death Cross Signals Risk

Gold Technical Analysis

The gold market continues to be noisy as it did rise slightly in the early part of the trading session, right as we’re about to get the so-called death cross with the 50-day EMA getting ready to break down below the 200-day EMA. We’ll see whether or not that kicks off further selling. Rising interest rates in America have not helped, and now it looks like the real battle is whether or not we can hang on to the $4,000 level. This is an area that will be crucial for the long-term health of the bullish trend for the last few years.

Technical Indicators and Support Boundaries

A breakdown below $3,900, I think, opens up a floor down to the $3,500 level in this market, and I think that’s probably pretty likely. Anytime this market rallies it seems to struggle, and with a reasonably strong US dollar, that’s going to continue to be a problem. Ultimately, I like the idea of perhaps fading short-term rallies that show signs of exhaustion, but really, at this point in time, I’m not overly aggressive.

I think gold is going to remain very noisy and that will probably be the way this market plays out for some time. With this, I like the idea of fading the first signs of exhaustion. I’m not really a big fan of jumping in with both feet, but I do recognize that if we break down, that could get ugly really quickly. If that’s going to be the case, then I anticipate that traders will continue to push and push, probably with a US dollar that’s rising at the same time.

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