Gold Price Faces $4,700 Resistance With $4,500 Support in Focus

Gold Technical Analysis

The gold market initially tried to recover and go looking to the $4,700 level but only found it as resistance. The $4,700 level has been important multiple times in the past. And as we are stretched, it does make a certain amount of sense that we are going to continue to see the $4,700 level cause a bit of a headache.

Ultimately, if the market does pull back from there, and it looks like it’s trying to at the moment, it could be a situation where we are just simply covering longs heading into the speech coming out of Jackson Hole by Kevin Warsh, Chairman of the Federal Reserve. This speech could give us a “heads up” as to where the monetary policy is heading in America, a major driver of gold at times.

Debate Over Policy

The Federal Reserve interest rate policy is something that’s being debated at the moment, and now it looks very much like a situation where his speech could set the tone for the next several months. If we do fall from here, the $4,500 level is an area where I’m very interested in as support. And if we were to see that play out, then I will be buying the dip in gold at that point.

But if the market were to break out to the upside and break above the $4,800 level, then you could see a little bit of FOMO, I think, come in as people will chase returns. This speech should be very important. If he sounds dovish, that will be good for gold, all things considered. If he sounds hawkish, that could rattle nerves.

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