Gold Price Analysis – Gold continues to See Noisy Trading

Gold Technical Analysis

The gold market initially tried to rally on Tuesday, but it looks like the 4,600 dollars level will continue to be a major problem. If we can break above there, then it’s likely that we could challenge the 50-day EMA, but for me it’s going to come down to how things are behaving in the Middle East. Quite frankly, if we can get some type of peace breaking out, that would be wonderful on a whole host of levels beyond the charts, but that would definitely help gold as it should send rates even lower.

Geopolitical Uncertainty and Technical Support

As things stand right now, there’s a lot of confusion because the Americans did attack a port in Iran and the Iranians, of course, are not happy about it. So as long as we are in this wait-and-see mode, I think that’s exactly what gold is going to do. It’s going to be in wait-and-see mode.

If we break down from here, the 200-day EMA is a support level that I think a lot of people will be watching as a potential floor in the market. Ultimately, this is a market that I think probably goes higher over the longer term, but in the meantime, we’re just killing time trying to figure out what people in both of these governments are going to end up doing.

Ultimately, I think you have a scenario where we just don’t have enough clarity for people to put a lot of money into the market. Position sizing is the one thing that you can control, so make sure that you do in this environment.

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