Gold Price Analysis – Gold Tests $4,000 Support Amid Death Cross Threat

Gold Technical Analysis

The gold market has fallen pretty significantly during the trading session on Thursday, and at this point, it’s worth noting that the $4,000 level continues to be an area of support. Now the market will be asking questions about the overall uptrend. If we can find some buyers coming back into the market, that could help gold, but at the same time, we also have the 50-day EMA breaking below the 200-day EMA a few days ago, kicking off the so-called death cross. Interest rates in America are climbing, which typically will cause some issues for gold.

Technical Indicators and Support Boundaries

That being said, we’re still very much in a consolidation range, and until we break down below the $3,900 level, I would still consider it to be so. The $4,200 level above could be thought of as a potential short-term resistance barrier.

So now, I think really, at this point in time, we’re in a pattern where most traders are just waiting to see if gold does, in fact, break down. Right now, the gold market looks pretty weak, but it’s worth noting that there has been a lot of aggressive support in the $4,000 region as of late.

The US dollar is a major driver of where this market can go at times, just as rates are, so pay close attention to both of those, as it is an important input into the market. What I find interesting is that despite the fact that CPI and PPI numbers came out weaker than anticipated this week, people are still betting on higher interest rates, and that has caused some issues here.

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