Gold Technical Analysis
The gold market has rallied a bit during the course of the week, but it gave back about half the gains as we are heading into the weekend. The weekly candlestick is a candlestick that has shown quite a bit of bullish pressure at one point. It is struggling to hang on to those gains near the $4,200 level.
The $4,000 level has offered support, and it looks like it extends down to the $3,900 level. Ultimately, we’ve been consolidating for about 5 weeks now, and it looks like it’s just more of the same. Interest rates are higher than they’ve been for a while, and that certainly has an influence on non-yielding assets such as gold.
Key Market Levels
$4,000, of course, is a large, round, psychologically significant figure, and that in and of itself probably attracts some attention as well. With this, the market looks very noisy, very choppy, but I think we also have to assume that the market is going to have to make a bigger decision sooner or later.
We are in the dead of summer, and markets can be quiet this time of year, so do keep that in mind. But as things stand right now, this looks like a market that probably is frozen by headlines as well, with the noise in the Middle East. A little bit of sideways action, really not a huge surprise as the markets continue to see a lot of choppiness.
If you’d like to know more about how to trade gold and silver, please visit our educational area.