Gold Price Analysis – Gold Continues to Watch Interest Rates and War

Gold Technical Analysis

The gold market has gapped a little bit higher to kick off the trading session on Friday as we roll into the weekend, which will certainly have its fair share of opportunity to cause chaos to risk appetite. The $4,600 level continues to be a major point of support, and I think that extends down to, I would assume, $4,500. At this point, it’s a question of whether or not we can bounce and continue to hang on to those gains.

Interest Rates and Market Pressure

I think, honestly, what you need to watch is the 10-year yield in the United States. If it breaks above 4.35%, that is part of what caused so much trouble previously. The market is looking at the idea of whether or not the interest rates in America were going to jump enough to make gold not a viable scenario as far as an investment.

I do think that we have to look at this in a geopolitical and interest rate situation. It’s not just the idea of risk off, gold up. After all, the US dollar is also used in that environment. So you have to pay close attention. With that being the case, I think you have a scenario where traders will probably hang out in this area and try to determine whether or not we can catch our footing.

A break above the $4,800 level for me would be a very positive sign. There’s a question right now of whether or not we just formed a massive double top. We are in the midst of consolidation. We are close to the bottom of it. So, I don’t know. We’ll just have to see how this plays out.

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