Gold Price Analysis – Gold Continues to Range Trade Heading into the Weekend

Gold Technical Analysis

The gold market has fallen back a bit during the trading session on Friday, as we can definitely see that despite the fact interest rates have dropped during the day, they are still a little bit higher than the market likes. And with that being said, I think you have to understand this is a market that remains very noisy and very focused on the fact that you can get a yield in the bond market as opposed to risking it in a non-yielding asset like gold.

Technical Analysis and Strategic Trading Outlook

If we do rally from here, the $4,600 level could be a bit of a barrier, and breaking above there opens up the possibility of a move to the 50-day EMA at the $4,692 level.

If we were to break above there, then it would change a lot of things, but I think at that point in time, you would have to see interest rates really collapse. At this point, this is a market that is going to remain choppy and noisy, but I also recognize that anytime we rally and show signs of exhaustion, I’ll be looking to short this market until the interest rate market changes its overall attitude.

Keep in mind that the weekend gives us an issue just waiting to happen, as a headline that comes out over the weekend that rattles the markets for the open could send gold in either direction, and because of this, I think Friday ends up being fairly choppy and quiet. I think there’s just too much exhaustion out there and too much drama for traders to get aggressive heading into the weekend, so I’m looking at just a small, tight range for the day, much like we’ve seen most of the week.

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