Gold Price Analysis – Gold Continues to See Selling Pressure

Gold Technical Analysis

The gold market has broken down pretty significantly during early trading here on Wednesday as we are threatening the bottom of the hammer from the 23rd of March, which breaking below there really could open up some selling here. The $4,000 level would come into focus almost immediately, and then after that, we could get a bit of a free fall in this market, which would be a continuation of the most recent action here.

It’ll be interesting to see how this plays out. Gold has been beaten pretty mercilessly for some time now as traders are looking for some type of yield, and the 10-year yield in the United States continues to be very healthy and elevated at this point.

Technical Resistance and Interest Rate Pressures

It’s probably only a matter of time before we have to resolve this, but being well below the 200-day EMA, I think we have a situation where gold is going to remain under pressure. As long as it does, it might be a situation where you look at this as a “fade the rallies” scenario, as sellers have been very aggressive recently.

If we can break above the 200-day EMA, then maybe you could start buying, but really at this point in time, I think you will watch the interest rates. If they’re rising on the 10-year yield in the United States, gold probably falls, although we did see a little bit of a break from that over the last 24 hours as both fell, so not a good sign for gold at this point in time.

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