Gold Price Analysis – Gold Continues to Move with Rates

Gold Technical Analysis

The gold market looks as if it is going to be choppy during the session on Friday which makes quite a bit of sense considering we are basically sitting around and waiting on the results of a peace negotiation between the United States and Iran over the weekend. This could lead to a very volatile open on Monday.

And of course, the 10-year yield continues to hang around the 4.3% level, which is a massive level as far as risk appetite is concerned. Because of this, I think we’re probably going to continue to have issues trying to find the right direction, but eventually we will settle in a direction and move in that way. Until then, it will be tough trading in this market.

Technical Outlook and Key Levels

Friday, though, I think it’s just going to be very messy, very choppy. A lot of people out there are not sure what to do with their money, and therefore, I would expect this market to hug the 50-day EMA. This is an indicator that a lot of systems will be looking at in this market.

If we do fall, the 4,600 level should continue to be supported. Breaking to the upside could bring the $5,000 level into the fray, but right now, I’m anticipating that we are just simply going to hang around and try to figure out what to do next in an environment that, quite frankly, is very volatile, very up in the air, and very unpredictable. Position sizing will be crucial in order to protect your account from massive drawdowns.

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