Gold Weekly Price Analysis – Gold Continues to See Rates, Central Banks, and War Drive Pricing

Gold Markets Weekly Technical Analysis

The gold market has been somewhat negative during the week, but we continue to see a lot of support near the $5,000 level. The $5,000 level of the course is a large, round, psychologically significant figure that a lot of people will be watching, and it is also an area that has continued to show noisy support.

If we were to break down below that could open up a significant amount of selling, perhaps down to the $4,600 level. All things being equal, this is a situation where traders are giving a little bit of a fear premium to gold due to the war, but we also have to keep in mind that central banks around the world have been buying gold hand over fist for a while and we have to understand that a lot of traders were just simply following them.

Central Bank Influence and Volatility

Interest rates around the world could, at least in theory, be cut, but the reality isn’t necessarily that clear because inflation numbers and labor numbers, for example, in the United States, continue to suggest that maybe the Federal Reserve may have to stay a little tighter for longer.

That I think continues to cause a little bit of volatility in this market and therefore you have to be somewhat patient from the longer-term perspective. If we were to pull back to the $4,600 level, I think that’s an ideal entry, but we’ll just have to wait and see if that happens. Ultimately, I have no interest in shorting gold, at least not anytime soon, as the world is a dangerous place again.

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