Gold Price Analysis – Gold Jumps to Open the Week

Gold Technical Analysis

The gold market has jumped pretty significantly to kick off the trading session here on Monday, as the Americans and the Iranians are expected to sign some type of peace agreement on Friday to at least put together a Framework to move forward. That being said, we have to be very careful here because it also looks a little suspicious that some of the things that the Iranians are claiming the Americans are agreeing to. If that were in fact really the case, it would be a bit surprising, so while I do think that the war is winding down, I think we’re way ahead of ourselves here.

Watch Yields

Watch the 10-year yield in the United States, which will continue to be a bit of a harbinger for where we may or may not go here. I do think you have a situation where if the markets start moving, the bond markets, that is, it will have a great influence on gold. We are testing the 200-day EMA. But quite frankly, before New York opens, we’re already up 3%.

I’m not saying we can’t go higher. I’m just saying chasing is a very risky thing to do at this point. Short-term pullbacks, I suspect, we’ll see a bit of support at the $4,200 level. That short-term pullback could be accompanied by headlines. So, I’d be very cautious here. Yes, this is a great bounce, but it still looks a little weak to me.

If we do in fact resume the uptrend from here, you have plenty of time to get involved. Do not feel like you have to chase the markets here.

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