Gold Price Analysis – Gold Continues to See Choppy Behavior with Buyers Below

Gold Technical Analysis

The gold market gapped lower to kick off the trading session, only to turn around and try to break to the upside. That being said, we found a bit of resistance at the resistance level of the previous session. In other words, I think we have a situation where a lot of back and forth continues to be the main attitude of this market, with the $5,000 level underneath being support.

The 50-day EMA sits underneath that level, offering some type of floor and I think ultimately, while gold can’t really take off at the moment, it certainly isn’t going to break down. I think this will be a very steady market, and I think that’s kind of interesting to see how money is actually flowing more, I think, to the US dollar from day to day than it is gold, but clearly there’s a bid for gold because every time we drop, there are buyers.

Investment Sentiment and Factors Influencing Gold

I think buying the dip continues to work here, as the geopolitical situation, not the least of which would be a Middle Eastern war, makes gold somewhat attractive, and it was in an uptrend previously anyway, as central banks have been filling their coffers with new purchases. Speaking of central banks, there’s the possibility that the Federal Reserve will be cutting rates twice this year and that provides a bit of a boost as well.

That being said, it’s not simply taking off like some would have expected, so therefore listen to what the market’s telling you. There is a bid, but it’s not necessarily a market that’s going to go screaming higher. I think we go looking for $5,500 before it’s all said and done, but we will have some red candles between here and there.

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