Gold Price Analysis – Gold Continues to See Support at $4K

Gold Technical Analysis

The gold market has been testing the $4,000 level again on Tuesday as we are watching this big figure and trying to sort out whether or not it holds. All things being equal, I think the gold market continues to be one that is being pressured by the US dollar strengthening and, of course, the idea that rates are still fairly high. After all, it is a non-yielding asset, so if you can get a decent yield in the bond market, it makes more sense for institutional traders to hold bonds.

That being said, we are at the bottom of a large consolidation area, and I think we could get a bit of a bounce, but it’s obvious to me that rallies are probably sold into.

Technical Levels and Currency Dynamics for Gold

The 200-day EMA currently sits at the $4,350 region. I think that would be your ceiling for the time being. For what it’s worth, the 50-day EMA is starting to snake lower, and that could cause the so-called death cross.

The biggest problem with the death cross is that it is often late, so I don’t know that we are at the end of the selling, but the gold market clearly has taken a beating over the last year. A lot of this is going to come down to how the US dollar behaves. Ultimately, they both could go higher, and I do think gold does eventually go higher.

If you’re trading it in other currencies, you probably have a much easier time. If we were to break down below the $3,900 level, it opens up the possibility of dropping to $3,500, but right now, it looks like the buyers are willing to step in and at least fight that premise.

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