Gold Price Analysis – Gold Drifts a Bit Lower on Juneteenth

Gold Technical Analysis

The gold market gapped lower to fall even further on Friday, but keep in mind Friday was Juneteenth in the United States, so that, of course, had a major influence on where markets could go, mainly due to the fact that you also have to recognize that the trading hours would have been shorter and with much less volume than usual for a Friday session. So, most of what you’re looking at here is Asian and European trading. The markets have been falling for a while, and with this, I think you have to look for whether or not the $4,000 level offers a floor for buyers to pay attention to.

So far, it looks very much like a hard floor in the market. With interest rates dropping, that being said, the correlation between rates and gold is starting to change a bit, so this is interesting to me. I think the market is trying to sniff out lower inflation, which could hurt gold. We’ll just have to see how that plays out. This is a market that seems to be in a state of “flux” at the moment.

Technical Outlook and Potential Consolidation Ranges

A breach of the $4,000 level opens up a move down to $3,500. Rallies at this point in time test the 200-day EMA at $4,371. Right now, I think longer-term gold eventually recovers, but there are a lot of questions to ask. Probably a bit of consolidation between the $4,000 level at the bottom and the 200-day EMA makes the most sense as a market range.

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