Gold Price Analysis – Gold Continues to Sit Near $4800

Gold Technical Analysis

The gold market has pulled back just a bit after initially gapping higher on Tuesday as we sit right here at the 50-day EMA. The market continues to be very noisy, but perhaps more than anything else, it continues to be attracted to this $4,800 level. As rates rose early in the morning gold sold off, that’s not a huge surprise.

Geopolitical Factors and Price Targets

We are just sitting around waiting to see what happens with the process in the Middle East and whether or not the Americans and the Iranians can finally come to some type of agreement. It is interesting that the ceasefire continues despite the fact that the United States seized an Iranian tanker over the weekend.

That being said, the fact that Iran has not gone out of its way to attack anything of substance is a sign that perhaps we are getting closer to the end. If that’s going to be the case, then I do think eventually gold goes higher once those interest rates fall.

If we fall from here in the gold market the $4,600 level is an area that I expect to see support. To the upside, I would look at the $5,000 level as a potential target. Ultimately, I think you’re going to see a lot of back-and-forth choppy behavior, but I do like the idea of buying dips at least at the moment, unless of course things go really bad in the Middle East, then you would have interest rates skyrocketing, the US dollar probably doing the same and gold falling.

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