Gold Price Analysis – Gold Continues to React to Interest Rates

Gold Technical Analysis

The gold market has fallen a bit during the early hours on Tuesday as interest rates in America continue to climb. That being said, the $4600 level is an area that we will have to watch very closely as it is a previous support and resistance barrier, and of course, a large, psychologically significant number. This is a level that a lot of people are watching very closely as America wakes up.

The Impact of the 10-Year Yield

That being said, we will have to pay close attention to the 10-year yield. If it starts to drop towards the 4.30 level, then that could give gold a little bit of a boost. Ultimately, this is a market that I think will be bullish eventually, but we are still so worried about the latest headlines coming out of the Middle East that interest rate markets continue to see rising yields that will cause plenty of problems for non-yielding assets such as gold. This remains a massive influence on this market, and where price is going.

If we do bounce from here, I think the 50-day EMA could be a bit of a target over the next couple of days, but again, we need to see that 10-year yield start to drop towards the crucial 4.30 level. If we can get below there, that could really help the gold market take off. Ultimately, though, if we break down below the $4600 level, then we might go looking all the way down to the 200-day EMA. This is likely to be messy if it happens.

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