Gold Price Analysis – Gold Continues to See Noise

Gold Technical Analysis

The gold market has fallen pretty significantly to kick off the trading week as interest rates obviously spiked due to the concerns coming out of the Middle East. With that being the case, we saw gold really start to flatten out and then drop hard, but we’ve since seen interest rates turn around as traders are starting to perhaps become a little bit more insulated or immune to the headlines. That does not mean that you should ignore the headlines. What it means is that they are not having the effect they once did, but this is a fluid situation to say the least.

Technical Outlook and Price Levels

Because of this, I am very interested in gold, and I think short-term dips continue to be buying opportunities. If we can break above the highs of the session on Friday, then we could go looking to the $5,000 level. If we break down below the lows of the candlestick here for Monday, that could open up the possibility of a move towards the $4,600 level. This is an area that should be very important to say the least.

I think this is a market that continues to be very noisy and I think you do have to be very careful, but position sizing can take a lot of the danger out of this market. I think eventually we will see the recovery. It really just needs some good news to make interest rates drop, which will come sooner or later. This is something that could be like rocket fuel from what I believe.

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