Gold Price Analysis – Gold Waits for War Headlines

Gold Technical Analysis

The gold market continues to see a lot of back-and-forth action, and early on Tuesday, I think they are probably just trying to figure out what to do next. We’re in a situation where the war, of course, is attracting most of the attention, and with that, it literally comes down to the latest headline coming across Twitter or other places, and as a result, I think a lot of traders don’t really know what to do.

We are hanging above the 200-day EMA, which in and of itself is a bit of a bullish sign, but I also recognize that we need to bounce, perhaps even take out the $4,600 level, to get anywhere near excited about owning gold.

Interest Rates and Storage Costs

Interest rates in America continue to be very high, and with that, I think you’ve got a situation where traders are watching the 10-year note to see whether or not those rates can come down because if they can, the reality is that it could give a little bit of a boost for gold. The storage cost is a major factor, and with that, I think you have to understand that it is not the safety trade driving gold at the moment.

Given enough time, though, I do think that if we can break above the $4,600 level, the question then will become whether or not we can find momentum. If we break down below the lows of the Monday session, that could wipe out gold. We’d be talking about breaking below $4,000, which would be a significant drop from the highs. Gold is not acting strongly, but it has started to stabilize, which is the first step in turning things around. I’ll be watching this very closely.

If you’d like to know more about how to trade gold and silver, please visit our educational area.