Gold Price Forecast: $4,510 Support Faces a Critical Test

Gold Technical Analysis

The gold market gapped lower to kick off the trading session on Monday, fell somewhat, and then turned around to show signs of life. This is a relatively decent sign considering how ugly Friday ended up being, and it does look like we are trying to turn around at an area that’s been important in the past, but whether or not we actually can remains to be seen.

The cluster right around $4,510 so far has supported the market. Interest rates have drifted a little bit lower, and therefore it does give the appearance of a market that may be rethinking some of the action on Friday. But at the same time, we are lower than where we started, so we do have to keep in mind that there are a lot of moving pieces at the moment, and therefore a lot of things to watch.

Technical Support and Interest Rate Pressures

From a technical analysis standpoint, this is pretty much where we would want to see the market try to fight back in this area, and so far, it has. However, there is a lot of noise in the market at the moment, and that probably won’t change soon.

The gold market is going to be heavily influenced by US interest rates. They have drifted a little bit lower so far for the session; we’ll have to wait and see how that plays out. And of course the US dollar, as it is priced in US dollars, has a certain amount of influence here as well. We’re right here at a support area where there has been a lot of action previously. We’ll just have to wait and see on Monday if this actually supports the market.

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