Gold Price Analysis – Gold Trying to Bounce

Gold Technical Analysis

The gold market has fallen a bit during the trading session in the early hours as interest rates in the United States continue to rise. With that being said the market is likely to continue to see a lot of questions about the overall interest rate situation in America and whether or not it continues to weigh upon gold despite the fact that gold is typically thought of as a safety asset.

200-Day EMA Holding

Ultimately, the 200-day EMA holding is a relatively strong sign, but gold is already rolling over after it has been reported that the United States and Iran had been talking, which is what sent gold higher, only to have the Iranians walk that back an hour later and say there has been no communication. So, the markets really don’t know what to do with themselves.

This will all come down to the interest rates in America, with 4.43% being a level that was hit in the 10-year. It makes a lot of sense that gold would fall in this environment because, quite frankly, the Federal Reserve probably has to stay somewhat tight, which is tough on gold as well, and should strengthen the US dollar.

Ultimately this is a market that I would probably sit on the sidelines for a day or two because there are so many bad things that could happen to your account that it just doesn’t warrant the risk. If you have a handful of random people around the world throwing out headlines determining where the next $50 come from, this is not the game, you should be playing. Whether or not we can bounce is totally irrelevant. I think we can eventually but right now it is clear that the bond market is running the show.

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