Gold Price Analysis – Gold Sitting on Top of Support Level

Gold Technical Analysis

The gold market has been very noisy during the trading session on Tuesday, as traders continue to see this through the prism of the interest rate correlation. Interest rates in the United States, the 10-year yield especially, have been attracting a lot of attention, and as a result, it does make a certain amount of sense that gold continues to move inversely, as the gold market, of course, is a non-yielding asset, while paper bonds do yield.

The $4,600 level continues to be very important, and this, of course, will be a major driver of where we go next. If yields can drop that should, at least in theory, be good for gold. The market dropping from here could signify that rates continue to rise but we’ll just have to wait and see.

Interest Rate Correlation and Key Resistance Levels

Ultimately, I do think the 50-day EMA is a little bit of a barrier that we will have to watch. If we can break above there, then it could open up the possibility of a move to $5,000. This is all about the interest rate market right now and unfortunately, that’s about whatever the next tweet is or news release involving the war. In other words, expect more chaos.

I’m fairly neutral on gold in the short term. Longer term, I remain bullish, but right now I’m fairly neutral. $4,600, of course, is important; I think it will continue to attract buyers as it becomes a bit of a “value play.” This market continues to be one that warrants caution.

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