Gold Price Analysis – Gold Continues to See Volatile Moves in Early Session

Gold Technical Analysis

The gold market continues to see a lot of noisy behavior as the 4600 level continues to be in focus. The 4600 level was support previously, and it should now end up being resistance, and that’s exactly what we’ve seen through the Asian session despite the fact that somebody released the idea that Trump was going to be okay with the Strait of Hormuz being closed and may sue for peace regardless of the Iranians.

I highly doubt it, but it did cause the intended effect of lifting risk appetite ever so slightly overnight. We’ve seen this in the last several Asian sessions, where something will be thrown out there to get the markets moving, and then the markets sort it out before it’s all said and done. With that being the case, I do think you have a scenario where a lot of traders are probably going to become very skeptical.

200 Day EMA and Support

The market will continue to look at the 200-day EMA underneath as a potential opportunity for support to show things as being at the bottom near the $4200 level, but we’ll just have to wait and see how that plays out. Quite frankly, I do not expect to see this market make a major move until the war is over.

That would be a result of the interest rates in America dropping, and that, of course, is something that would take quite a bit of good news to happen. After all, a lot of what we’re pricing in is the energy inflation that almost certainly will hit most places, including the United States. I think we have a positive market short term, but whether or not it can truly take off, you’re going to have to see the United States 10-year yields drop below the 4.3% to have anything that actually sticks.

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