Gold Price Analysis – Gold Continues to See Buyers as it Faces Resistance

Gold Technical Analysis

The gold market initially gapped lower to kick off the trading session on Friday, only to turn around and show signs of life again. With this being said, the market did react to the 50-day EMA, at least initially, and that’s exactly where it reacted during the previous session, so that does get my attention. After all, if we see an area where traders cannot get the market above, then that tells me that there is a situation where traders just don’t have the power to push it higher.

That doesn’t mean it can’t change, and it doesn’t mean that it won’t change, but it is something worth watching. Interest rates in America are a little lower than they were yesterday, but not drastically so. We are still in an environment where people are going to be concerned about interest rates and whether or not the Federal Reserve can cut rates.

Technical Analysis and Market Sentiment

After all, you have to assume that with the jobs number beating estimates, then you have to believe that traders are worried about the Federal Reserve keeping those rates higher than initially thought, and if that’s the case, that is a bit toxic for gold.

On the other hand, though, a technical answer here is if we can break above the shooting star from the previous session on Thursday, that could open up a move towards the $4,880 level. I think it is probably a little choppy on Friday, but that candlestick from Thursday really could be your clue to see if we’re willing to go higher, especially if rates drop with it.

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