Gold Price Analysis – Gold Rallies Near $4,200 Resistance Despite Rising Rates

Gold Technical Analysis

The gold market has rallied a bit during the early part of the trading session here on Wednesday as we continue to see a lot of volatility in general, not just here, but many other markets as well.

Ultimately, the market will be paying attention to interest rates as they are rising, and typically this will work against gold. Whether or not anything has changed from a longer-term standpoint remains to be seen, but as things look right now, it seems like the market is in a bit of consolidation. The top of that consolidation is at the $4,200 level, so that will be worth watching very closely. A break above that would have traders excited to say the least.

Death Cross Signals and Support Levels

We recently had the death cross when the 50-day EMA breaks down below the 200-day EMA, a signal that longer-term traders normally view as very negative.

The $4,000 level continues to be a bit of a floor, but we’ll see how that plays out. It’s more of a range based on price history down to the $3,900 level. Breaking below there would obviously have people thinking lower pricing. It would be a major breach of support.

As things stand right now, it looks like we’re just simply content to go back and forth in this range, and range-bound traders are probably living it up right now, as it is such a well-defined area. This remains a market that seems to be looking to make a bigger move, but with so much uncertainty, it is possible that traders are simply waiting for a clearer signal.

If you’d like to know more about how to trade gold and silver, please visit our educational area.