Gold Price Analysis – Gold Markets Drop Heading to a Holiday Session

Gold Technical Analysis

The gold market gapped lower to kick off the trading session on Thursday, only to turn around and fill that gap pretty quickly. That being said, we’ve also given back those gains, and it now looks like gold is ready to roll over. I think ultimately this is a market that goes looking to the $4,000 level, an area that will remain important. It’s a large, round, psychologically significant figure and an area that has proved itself to be important previously.

If you turn around and break above the 200-day EMA, then you could see the gold market go looking to the 50-day EMA. All things being equal, this is a market is trying to figure out where we are heading next.

Interest Rate Correlations and Holiday Liquidity

Interest rates dropping, ironically enough, has been a potential bullish sign for gold, but I also recognize that the rates dropping and gold dropping is an interesting correlation because suddenly things are changing.

With that and the fact that gold is still failing with dropping rates, I think that tells you that gold is perhaps going to struggle. Whether or not we break down below the $4,000 level, then we could send this market down to the $3,500 level.

Ultimately, you should keep in mind that the Friday session is Juneteenth in the United States, and that, of course, has major influences on how things are going to behave because the markets will be closed for a big chunk of the day. With this, I think people just aren’t willing to hang on to gold with a 3-day weekend coming up and the news flow creating who knows what.

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