Gold Price Analysis – Golden Cross Is Near, But $4,500 Resistance Still Holds

Gold

The gold market has continued to be very noisy as we are bouncing around just below the $4,500 level. The $4,500 level is a large, round, psychologically significant figure, and an area that will cause some headlines.

All things being equal, this is a market that I think continues to be very noisy and asks a lot of questions with the idea of the Middle East and all the conflict going on there, whether or not there’s going to be some type of resolution.

The interest rate markets, which are still elevated, and then of course what’s going on with the Federal Reserve. A lot of people are starting to question what we once thought about the Federal Reserve and its monetary policy trajectory, which is starting to move markets overall, not just here.

Bullish Flag, $4,500 Resistance, and the Golden Cross

We’ll have to wait and see whether or not this breaks out to the upside, but the $4,500 level is definitely an area that I think a lot of people are watching to see where we go next. Ultimately, we are trying to decide that right now I think.

The recent technical analysis suggests that maybe we’re forming a bullish flag, and gold, at least from a sentiment standpoint, seems to be picking up from everything I’ve seen.

The 50-day EMA is trying to reach above the 200-day EMA, kicking off the so-called Golden Cross, which is a longer-term buy-and-hold signal for some longer-term investors.

I do like gold, but I also recognize that there is a little bit of resistance just above. This is going to continue to be the battle, deciding whether or not we can get that break higher.