Gold Price Analysis – Gold Continues to Move with Rates in the US

Gold Technical Analysis

The gold market has shown itself to be somewhat bullish as the 50-day EMA has offered a little bit of a floor. Ultimately, I think this is a market that is going to continue to move with the latest interest rate moves and if interest rates continue to drift a little bit lower that should help gold overall.

I’m using the 10-year interest rate in the United States as a bit of a proxy for risk appetite. As risk appetite picks up with lower rates, then it should help gold, which is a little bit ironic considering so many people look at gold as a safety trade and it can be, it just hasn’t been as of late. This can and will change someday, but not today, as the situation in the Middle East trumps everything that we typically pay attention to.

Psychologically Significant Targets

The market at this point in time I think is eyeballing the $5,000 level, a large round psychologically significant figure that has shown itself to be both support and resistance multiple times, so I think that’s probably where we are eventually heading to.

If we pull back from here, the $4,600 level is your floor, and I would be very interested in buying dips in gold. I also recognize that there are a lot of questions out there about risk appetite, the bond markets, mainly driven by the Middle East and whatever’s going on in the latest ceasefire talks, so a very fluid situation but I do favor the upside over the longer term, and always keep at least some allocation of gold in my account.

If you’d like to know more about how to trade gold and silver, please visit our educational area.