Gold Weekly Price Analysis – Gold Has a Tough Week as Rates Jump

Gold Markets Weekly Technical Analysis

The gold market has fallen for almost the entirety of the week as the $4,600 level has offered quite a bit of resistance. That being said, it’s also worth noting that the interest rate market has jumped as well. With this being the case, I think you’ve got a scenario where traders are looking at this through the prism of the interest rate markets reacting, at least at the moment, to the jobs report in the United States being twice what was expected.

That being said, the market is also worth watching the interest rate scenario because of the situation in the Middle East. The Middle East, of course, is still a mess, it hasn’t really seen any breakthrough, and as long as interest rates stay high based on the idea of potential energy inflation, it does work against gold. Gold is a non-yielding asset.

Technical Support and Trend Lines

The 50-week EMA is down at the $4,270 level, and then on the daily chart, there’s a little area right around $4,100 that I’d be watching. If we give that up, things could get ugly pretty quickly.

I would watch for a potential bounce, and that probably would be a reaction to interest rates dropping, so keep an eye on that. I think it’s going to be difficult to trade the weekly chart. You will need to take your cues from the daily chart, but you can see things are starting to just kind of roll over.

One could make a bit of an uptrend line in this market in a couple of different places that could come into the picture, and therefore, I would watch the trend line that lines up with the 50-week EMA, see if that holds. That could be a big deal for traders, we’ll just have to wait and see.