Gold Price Analysis – Gold Continues to Chop at Large Figure

Gold Technical Analysis

The gold market has been very choppy and noisy during the trading session on Thursday in the early hours, as we continue to pay close attention to the 5,000 level, as we have seen for some time now.

The 5,000 level of the course is an area that I think a lot of people will be watching; it’s a large, round, psychologically significant figure, and one would imagine there’s probably quite a bit of options trading right around this range.

We are starting to see a little bit of a hawkish FOMC minute release during the previous session, maybe weighing on the idea of the US dollar falling apart, although it’s worth noting the dollar was down a little bit as I record this, and that maybe is weighing on gold just a touch.

Yield Pressures and Support Targets

Really, at this point in time, I think we’ll be watching whether or not we liquidate towards the 4,850 level. That might be the case if the 10-year yield starts to jump; maybe if it can sustain a move above 4.10% that might put pressure on here.

But in general, I think this is a situation where you’re looking for dips as potential buying opportunities. I also recognize that after this massive run up and this big slamming candlestick to the downside, a little bit of sideways consolidation goes a long way here.

I think you will continue to buy dips, but I also recognize that we need a reason to go much higher and right now we just don’t have it. So, it becomes more of a trading range before it’s all said and done.

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