Gold Price Analysis – Gold Continues to Bounce in a Tight Range

Gold Technical Analysis

The gold market continues to be very noisy as traders are looking at this through the prism of interest rates and the overall behavior of market participants in general. I think the market will continue to pay attention to the 10-year yield in the United States and if it really starts to rise again rather significantly, then I think you have to believe that gold will suffer. After all, gold is a non-yielding asset, and for quite some time, that has been one of the biggest factors here.

The $4,600 level is an area of support followed by the $4,500 level. To the upside, if we were to break above the $4,800 level, then it opens up a move to the $4,900 level. This is a market that continues to see a lot of buyers over time.

Yield Pressures and Market Clarity

All things being equal, I do think you have a situation where traders are trying to find value, but at the same time, there’s so much uncertainty out there that they don’t really know what to do with the yield situation, especially as the Middle East continues to be a place where there just is no clarity.

I like the idea of buying gold on dips, but you have to do it in small positions because if you get yourself levered too much, you could find yourself losing quite rapidly. At this point, only short-term trades are likely to be the way forward, with the overall attitude being bullish, but also concerned with the volatility that has been part of this market.

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