Gold Price Analysis – Gold Continues to See Rate Influence on Friday

Gold Technical Analysis

The Gold market has rallied a bit during the early part of the trading session on Friday as it is threatening the familiar 4,600 dollars level. The question is, can we get above that? And I think that answer will be found in the bond market. Quite frankly, interest rates in America seem to be driving everything and with the 10-year yield starting to slip a little bit, that does give Gold some help rising to the upside.

If Gold can break above 4,600 dollars and maintain above there for any length of time, I think you’ve got a real shot at Gold taking off. Could see Gold going all the way to the 4,800 dollars level, but we’ll just have to wait and see whether or not that actually plays out that way.

Long-Term Outlook and Geopolitical Noise

Ultimately, I do like Gold from a longer-term standpoint, but I recognize that as long as we have this noise coming out of the Middle East between Iran and the United States, you’re going to have a major problem in the sense that nobody really knows what to do with themselves, and in that environment, it’s very difficult to get aggressive one way or the other.

Interest rates will continue to drive things. The higher they go, the worse for Gold. The lower they go, the better for Gold. It’s basically been the way this has played out for some time now, and I don’t see that changing very easily at this point in time.

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