Gold Weekly Price Analysis – Gold Continues to See Choppiness

Gold Weekly Technical Analysis

The gold market continues to see a lot of volatility, and as interest rates rose again during the week, we have seen gold struggle. That being said, I’m watching the $4,600 level as a potential barrier to being bullish. If we can’t get above there, then I just think this market is going to languish.

Potential Support and Long-Term Outlook

That being said, if we break down from here, I expect a certain amount of support near the $4,500 level, and then again at the 50-week EMA at $4,250. To the upside, breaking above the $4,600 level opens up $4,800, followed by $5,000.

Now, having said that, I do believe gold goes higher over the longer term. But as long as interest rates remain fairly high, it is difficult for non-yielding assets such as gold and silver to do well with any type of sustainability. I think that’s what we’re seeing here. We’re just seeing a market that doesn’t have enough momentum or sustainability to really push prices higher. This is a market that will eventually be explosive again, but in this environment, it is very difficult for traders to ignore the rates that are offered at this point.

A lot of sideways action, I think, is what we’re waiting to see. I do think eventually we have an argument to start buying and holding again, but we need clarity in places like the Middle East to make that truly happen. Honestly, I don’t think we’re that close to solving that situation, and therefore, a lot of patience will be necessary to get involved here.

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