Gold Price Analysis – Gold Continues to Grind Higher

Gold Technical Analysis

The gold market is slightly positive during the trading session here on Monday, but it looks to me like market participants continue to see a lot of questions asked about the overall situation in the Middle East, and of course, this is an area that we have been in for a couple of days now in the form of the 50-day EMA. With that, I think you have to wonder whether or not the market will be able to finally break above it.

We’ll have to wait and see, but even if we pull back from here, I think there’s plenty of support at the $4,600 level as well as the $4,480 level. Overall, this is a market that, given enough time, I do believe we have to make a bigger decision.

Market Dynamics and the Impact of Yields

When I look at the gold market, I recognize that it is very bullish longer term, but recently we’ve been drifting lower, and most of that comes down to interest rates. The 10-year yield in the United States is extraordinarily high, and with that, I think it continues to work against the longer-term uptrend in the short term.

If we can get some type of resolution to the Middle East situation, then we could go higher, but I think over enough time, traders are starting to look a little bit beyond the Middle East, and we will continue the overall buy on the dip mentality. If we can break above $4,900 that would be a major positive sign for this market. We’re a couple of $100 short of there, but as things stand right now, there’s nothing on this chart that has me ultimately bearish. I just think there are a lot of noisy headlines out there.

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