Gold Price Analysis – Gold Continues to Fall with Rising Rates

Gold Technical Analysis

The gold market has drifted a bit lower during the early hours on Friday as interest rates in America continue to climb. The interest rate situation in America is highly tied to the idea of the Middle East war not necessarily coming to a clean and abrupt end, which I think a lot of traders had hoped for.

And with the lack of clarity there, it does have people worried. After all, they have to worry about the idea of whether or not we will flare back up and there could be an energy shock as far as inflation is concerned, so that’s what the 10-year is trying to price in. This will continue to be the pattern from what I see at the moment.

Impact of Rising Interest Rates on Gold

When we break above the 4.30% level, it tends to make it hard for risk assets such as metals or even stocks, so it’s not a huge surprise to see how this is behaving. Ultimately, this is a market, though, that I think does have a floor in it near the $4600 level, so keep an eye on that.

A rally at this point in time should see the 50-day EMA above as specifically interesting, an area of equilibrium, if you will, based on the last couple of weeks. And if we break above there, we could go looking to the $4900 level.

I have no interest whatsoever in shorting this market. I don’t necessarily think it’s one you buy right away but watch that 4.30% level. If we drift back below there, it probably has gold going higher.

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