Gold Price Analysis – Gold Continues to See Choppiness

Gold Technical Analysis

The gold market has fallen a bit during the trading session here on Friday as interest rates have climbed a bit. This continues to be the correlation time and time again that the 10-year yield starts to pick up a little bit, gold starts to sell off and vice versa. This market will continue to look for clues coming out of the bond market for its next rise or fall.

With that being said, this is a market that will remain held hostage to the idea of headlines coming out of the Middle East that could shock things at any given moment. With that being said, this is a market that I think you have to be cautious with your position size in either direction because things can change so quickly.

Psychological Support and Yield Correlations

With that being the case, be aware of the fact that it is very noisy right around the $4,600 level. The $4,600 level is a large, round, psychologically significant figure that’s meant something to the market multiple times. This should continue to be a place where people will be watching price action, along with the interest rate moves. The “safety premium” of gold is simply nonexistent at the moment.

So, with that being said, be aware of position sizing, be aware of headlines and most certainly keep an eye on the interest rate markets and there is your correlation. As things stand right now, that has been very reliable. Of course, things can change over time, but it’s all about the bond market currently, and I just don’t see that changing easily.

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