Gold Price Analysis – Gold Continues to Move on Rates

Gold Technical Analysis

The gold market has gone somewhat sideways during the trading session here on Monday as the interest rate markets continue to hang around the 4.30 level as traders are trying to sort out whether or not we’re going to get any noteworthy news out of the Middle East again.

As things stand right now, nobody’s willing to talk to each other but the bombs aren’t exactly flying either, so we’re just in this weird moment of indecision. And I think gold exemplifies how the market feels right now.

The Impact of Interest Rates on Gold

If rates drop, that’s going to be good for gold; if rates rise, that’s going to be bad for gold. I think that’s basically where we’re at. The 4.30 level is an area a lot of people will be watching closely because as we shoot above that level, that generally has meant bad things for not only gold but just any risk asset.

As rates plunge, typically speaking, that’s good for gold. I do think that there is a significant amount of support near the $4600 level as well, so that’s worth watching also. A breakdown below there opens up a move down to the 200-day EMA.

All things being equal, I’m fairly neutral but I have more of a positive twist as far as my thought process is concerned, if that makes any sense. But unfortunately, we’re waiting for headlines and people to decide whether or not they want more war or they want peace. And as things stand right now, it’s all about braggadocio and that type of behavior in the public eye.

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