Gold Price Analysis – Gold Continues to Move on Rates

Gold Technical Analysis

The gold market initially drifted a little bit lower. It actually gapped slightly lower during the open on Tuesday but has turned around to show signs of life again as traders continue to see interest rate markets influencing what happens next in the metals markets in general.

The gold market is currently testing the 200-day EMA. If we can break above the 200-day EMA, then it’s possible that we could go looking to the 50-day EMA, but we need to see the interest rate markets drop.

Technical Analysis and Interest Rate Influence

The market pulling back from here makes a certain amount of sense, as we had jumped quite a bit. With the $4,200 level as potential support, that could be a nice buying opportunity if we see rates start dropping again.

If rates just drop from here, then like I said, I believe the 50-day EMA gets targeted, perhaps the $4,600 level. When you look at this chart from a longer-term standpoint, we are most certainly seeing a lot of support near the $4,000 level.

It’ll be interesting to see how this plays out. Unfortunately, a lot of this comes down to headlines coming out of the Middle East, which, of course, can change at the drop of a hat. So, the one thing that you need to be very cautious about is your position sizing; make sure that it’s reasonable. I do like gold longer term, but interest rates will continue to be a major influence. With this, expect a lot of noise in general, and as a result, you may have a few volatile days ahead.

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