Gold Price Analysis – Gold Slightly Soft in Early Trading

Gold Technical Analysis

The gold market initially tried to rally a bit during the early part of the trading session on Wednesday but has given back a little bit of the gains as we continue to struggle just a touch to truly break out and break free. Interest rates in America continue to drop so that should help eventually, but a little bit of a pullback I think makes a lot of sense in this region.

After all, we are looking at a market that has been somewhat range bound and I do think that we have a situation where traders are going to continue to look at the $4,600 level as a massive floor in the market. As long as we can stay above there, we have a real shot at the market staying positive. In that scenario, I would expect a bigger move overall.

Interest Rates and Geopolitical Influence

If we can break out to the upside, the $5,000 level would be a bit of a target; I think it would also be a bit of a ceiling. Interest rates in America continue to dance around the 4.30 level, which is an area that I think will have to be watched very closely. If rates continue to stay far south of there, that drives gold higher. If it goes back above there, then that drives it lower.

This is all about the war in the Middle East and the latest headlines. As things stand right now, I simply like buying short-term pullbacks for trades, not investments. Eventually, I do think gold goes much higher.

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