Gold Price Analysis – Gold Continues to Move with Bond Yields

Gold Technical Analysis

The gold market has drifted a bit lower during the early part of the trading session on Thursday, reaching toward the 200-day EMA. The 200-day EMA, of course, is going to be an indicator that a lot of people watch very closely for support. And at this juncture, I think we have to look at this through the prism of a market that is just trying to find some type of floor.

If the market can rally from here, the $4,600 level, I think, is resistance, followed by the 50-day EMA. Those could be your targets if we get some type of bounce. If we break down below the 200-day EMA, it opens up the possibility of a move down to the $4,200 level.

Impact of the Bond Market and Geopolitics

I do think that gold is just simply watching the bond market still, and as rates rise, it’s very difficult for gold to do the same. It’s not the be-all, end-of-all, but it is a major driver of where we’re going.

Keep in mind that the situation in the Middle East continues to be fluid and volatile, to say the least. So, with that, I think you have to believe that this is a market that is simply going to be very choppy. Unfortunately, the situation in the Middle East is probably not going to resolve itself easily, and if that’s the case, we probably have more of this type of choppy, slightly negative trading ahead of us. I think gold will remain a short-term trading environment for some time.

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