Gold Price Analysis – Gold Continues to Hover Around a Major Level

Gold Technical Analysis

Gold initially fell during the trading session on Monday, but it looks very likely to continue to see a little bit of support in this general vicinity. With that being said, market participants continue to watch the 10-year yield and other interest rates in America as they climb. This has been the pattern for some time now, and as a result, we need to be very wary of what happens in this market.

Interest Rates and the Gold Market

As they climb, typically it’s bad for gold, but we’re just in this area of malaise right now that I think will continue to be somewhat supported just because of the psychology. But if we do break down below here, I could see the $4400 level being targeted, just above the 200-day EMA.

To the upside, the $5000 level could be a target, but we need rates to drop pretty significantly for that to happen. Until then, this is probably a sideways short-term range-bound market that, unfortunately, will be moving onto the latest headlines more than anything else because that’s what’s moving the bond market. This is where retail traders have a massive disadvantage.

I get a lot of emails wondering why gold isn’t taking off during the war and that’s because of what’s going on in the bond market. It’s just that simple. Unfortunately, most people believe it’s a one-factor market and it is not. So right now, yields are the biggest thing. That is your compass as to where we go: higher yields, lower gold, and vice versa.

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