Gold Price Analysis – Gold Stalls Near $4,500 Resistance as Yields Waver

Gold Technical Analysis

The gold market initially tried to rally during the trading session on Thursday, but it is struggling a little bit. As I’ve been saying for a few days now, sooner or later gravity comes back into the picture, and that might be what we’re seeing here: a simple return to a little bit of normalcy after a shot higher. Whether or not gold pulls back significantly remains to be seen, but one could see a move to the 200-day EMA and still think that is relatively normal.

To the upside, we have the $4,500 level, which has offered a bit of resistance recently, and then we have the $4,600 level, which has been structurally important. I’ll be watching both of those levels for potential targets for bulls. If we pull back from here, a bounce from the 200-day EMA would be a significant technical setup that will, more likely than not, capture the attention of a lot of traders as it is such a widely followed indicator.

Interest Rates and Technical Targets

Breaking down below the 50-day EMA, that means the market could go looking to the $4,200 level again, which was where the market had broken out of during that previous rectangle. Interest rates are somewhat piddling around right now, and that’s a good way to describe the gold market. Interest rates have a major influence on gold most of the time, so that’s worth watching. If the interest rates start to spike, that could be a problem for gold bulls. This is still a very fluid situation coming out of the Middle East, and by extension, the bond markets.

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