Gold Technical Analysis
The gold market was very noisy during the trading session on Thursday in the early hours. That being said, we are basically hanging around the same demand area between $4,200 and $4,000. This is an area that has been important to traders a couple of times in the past.
Interest Rates Continue to Be the Culprit
Ultimately, this is a market that is watching interest rates continue to climb, and that is creating a little bit of downward pressure on gold. That being said, this is a market that is watching a lot of things at the same time, not least of which would be the conflict in the Middle East.
We are in an area where technical analysts will be looking for some type of bounce, and we also have to keep in mind that this is a situation that could be watching European debt issues. We are starting to see some problems with French, Greek, and Italian debt now, so we will see whether or not that makes gold more desirable. This is a growing problem at the moment, not a shrinking one.
It is worth noting that the higher yields so far, at least in the United States particularly, have made gold less attractive. We are in an area where technical analysts will be looking for some type of bounce, but we just have not seen it quite yet.
The energy inflation situation continues to be a major driver of gold. So, if we could get relief in oil, it could lead to a knock-on effect. We will just have to wait and see.
Gold Price Forecast
Every new Gold analysis as it publishes, today's technical signal and key levels, live price — on one page.
See all Gold forecastsIf you’d like to know more about how to trade gold and silver, please visit our educational area.
