Gold Price Analysis – Gold Continues to Sit at Same Level

Gold Technical Analysis

Gold continues to dance around the 50-day EMA as the market is trying to determine where we go next. A lot of what’s driving the gold market is the interest rate market, which is right at the 4.30% level in the US 10-year, which is what I use to pay attention to interest rate expectations and where the markets are going in general.

This is an area in the interest rate markets that has been very important and as we teeter here, we teeter in gold. If we fall from here, the $4,600 level I think is your support level. The $5,000 level above is your resistance and potential target.

Interest Rate Sensitivity and Geopolitical Mode

If interest rates fall, generally speaking, gold should rise. Now interest rates are moving on the latest Middle Eastern headlines, and therefore, we are more or less trying to figure out where to go next. In an environment where generally there’s more optimism, but there’s no concrete deal, no concrete peace deal, anything like that going on, so really I think most of the market is just in a wait-and-see type of mode.

Because of this, I suspect we just sit here and hang around the 50-day EMA trying to sort out where we are going to move next. Really, at this point in time, it’s probably about short-term back and forth little micro moves that day traders will be taking advantage of. This is a tight market, perhaps it needs to be traded on short-term time frames more than anything else.

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