Gold Price Analysis – Gold Continues to See Buyers Support, Despite Rates

Gold Technical Analysis

The gold market looks as if it is trying to turn things around during the trading session on Monday after initially plunging. And now I am watching the $4600 level because if we can recapture that, it would be a very good sign; it could open up a move to the $4800 level.

Breaking down from here and below the $4500 level opens up the possibility of a drop down to the 200-day EMA. And with this being the case, I think you have to be cognizant of the fact that the interest rate situation in the United States will continue to be a major driver of where we go next as well, as rates are extraordinarily high.

Technical Indicators and Interest Rate Headwinds

As long as that’s the case, it does work against gold in general, but we are getting to the point basically where sooner or later, something’s going to have to break. We’ll just have to wait and see what that is.

Gold breaking down below the 200-day EMA would open up a massive sell-off, and it would probably be accompanied by insane momentum in the 10-year yield in America. This has been a major issue and will continue to be at this point.

For some time now, we’ve been watching the 10-year yield, and most of what we’ve seen has been that it’s just climbing, and that has been what’s been working against gold for this entire time. Despite the fact that there are wars to worry about, interest rates offering a return over a non-yielding asset quite often attract capital inflows, just as we’re seeing now.

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