Gold Price Analysis – Gold Drops Back to Familiar Level on Thursday

Gold Technical Analysis

The gold market has plunged in early trading on Thursday, reaching towards the crucial $4,600 level before bouncing about $50 as New York opens. Whether or not it holds will be paramount.

The situation in gold, of course, is heavily influenced by the rate situation, with the 10-year yield jumping well above 4.30 again. It does suggest that gold will continue to be a very busy and dangerous place to trade with huge positions.

That being said, it is in an area that I am very interested in buying on the dips if we get stability and those yields in America start to drop again. I need both of those to happen to get aggressive to the upside.

Building Positions and Key Support

When I say aggressive, I do not necessarily mean huge positions, just to build a position and then add to it as it works out in my favor. If we break down below the $4,600 level, then we could revisit $4,400 underneath there. This is an absolute “line in the sand” that I will be watching, as it must hold in general.

Keep in mind that Good Friday will see a lot of markets shut down pretty early, so in this environment, I think a lot of you probably will be better off just observing, but who knows, we will have to wait and see. Holding $4,600 would be crucial, and it would be a bit of a victory for a market that has been thrown around by the bond market so wildly as of late.

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