Gold Price Analysis – Gold Continues to See Buying

Gold Technical Analysis

Gold markets rallied again during the trading session early on Thursday as interest rates in America continued to drift a little bit lower. We are now challenging the 50-day EMA, which may or may not make a difference. This is a market that I think is going to solely pay attention to the interest rate markets and whether or not rates are rising, because when they do, it really works against these non-yielding assets like gold.

It is worth noting that there is still some optimism that something can be worked out in the Middle East, but we’ve seen that story before, and therefore, I think there is a little bit of caution here. Rates are still somewhat elevated, they’re at 4.334%, as I recorded this video, which is higher than usual, but it is down from the point just a few days ago, where it looked like we were going to try to break through 4.5%.

Interest Rate Influence and Key Technical Support

That being said, there is a little bit of a fulcrum in the market right around the $4,600 level, and it’s almost like a magnet for price, so if we do pull back, I’d expect to see people interested in getting gold right around there. If we break down below that level, then we’ll have to watch $4,500, anything below there could be toxic for the market.

Ultimately, I like gold from a structural standpoint and from the longer term, but I also recognize that there is so much noise in the rate market right now that it is difficult to go all in if you will. With that, I am cautiously optimistic for the trajectory of gold, and still believe it eventually goes higher.

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