Gold Price Analysis – Gold Continues to See Rates Pressure Market

Gold Technical Analysis

The gold market has struggled with the $4,600 level, an area that, quite frankly, I think continues to be very important here as traders are looking at it from a historical perspective. It’s been both support and resistance.

I also recognize that we have a market that is watching the 10-year yield, and it is starting to try to at least turn a little bit higher during the session. That’s part of the negativity that we have seen, but it’s not exactly screaming higher.

So, I think what we’re going to end up doing more likely than not is just hang out here in this general vicinity and wait to see whether or not the bond markets will be an issue or if they will start to work in our favor again.

Technical Indicators and Market Outlook

All things being equal, I do believe that the 200-day EMA below should continue to offer support, while the 50-day EMA above, which is above the $4,600 level, could be a major ceiling that might be difficult to break out of.

All things being equal though, I do believe long term gold should do quite well. I think there will be a lot of demand for gold because of the possibility of a major rate cutting cycle coming down the road once we get through the shocks that occurred in the Middle East with the war and, of course, once we get a little bit of clarity with that entire situation. I think that causes the bond market to relax a bit and, in turn, should drive the price of gold higher.

If we break down below the 200-day EMA, we could drop somewhat significantly. I think at that point in time you’re probably looking at rates rising rapidly. So, keep an eye on both the 10-year yield in America and the gold market at the same time.

If you’d like to know more about how to trade gold and silver, please visit our educational area.