Gold Price Analysis – Gold Gaps Higher as FOMC Holds Interest Rate

Gold Technical Analysis

The gold market gapped higher to kick off the trading session on Thursday as markets are reacting to the FOMC not hiking rates. The 9-to-3 voting record suggested that maybe it’s a little longer before the US actually does hike rates, although we’ve seen this movie before. It is simply gold testing its range at the moment, and the top of its range is closer to the $4,200 level.

It’s an area that’s been very difficult to break above, with the 50-day EMA approaching there as well. I think you’ve got a situation where market participants are just simply banging around here trying to figure out where to go next. Interest rates, of course, will have their part to play, but at this point in time, just looking at the chart by itself gives me a general idea of what’s going on.

Key Levels

We recently had the death cross form; not a big fan of that indicator, but it is one that longer-term traders do tend to pay attention to. I find it typically is a little late. If you were waiting for the 50-day EMA to cross below the 200-day EMA to get out of a long position, it was about $1,000 too late.

So, with that being the case, it is worth watching as far as an attitude is concerned, but it’s not an actionable signal for me. The $4,000 level offers support. I think that extends support down to somewhere around 3,900, and $4,200, as I said, had been significant resistance previously. We’re already starting to pull back a little bit from that initial shot higher.

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