Gold Price Analysis – Gold Continues to Look to the $4000 Region

Gold Technical Analysis

The gold market has shown itself to be somewhat bearish early during trading here on Tuesday as traders continue to pay close attention to what’s going on in the Middle East. Quite frankly, we have a scenario where traders are watching headlines, the latest of which being the Iranians claim that they will run the administration of the Strait of Hormuz after everything is said and done. And that, of course, dims the prospect for peace. Now, having said that, nothing’s happened yet, but the market did react.

To me, it looks like a market that is trying to find a way to test the $4,000 level, an area that, quite frankly, is a large, round, psychologically significant figure and one that a lot of traders will be watching closely. After all, it is more likely than not going to end up being a major options barrier and, of course, makes for good headlines.

Technical Support Levels and Consolidation Boundaries

If we do rally from here, we might be looking at a move to the 200-day EMA, but we’ll just have to wait and see if that plays out. That would be the top of the consolidation that we’ve been in for a couple of weeks now.

I think gold, much like many other markets right now, simply doesn’t know what to do, and that makes a certain amount of sense because it seems like risk is all over the place. I suspect we will see $4,000 offer support. If we get closer to that area and start to bounce, it could be a nice short-term buying opportunity.

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