Gold Weekly Price Analysis – Gold Has a Tough Week as Rates Move Things

Gold Weekly Performance

The market has been a very difficult one to deal with over the last couple of weeks because quite frankly, we’re just moving on the latest headlines as they come out.

And this shows up the most in the bond market, which has a huge influence on the gold market. As rates rise, it’s typically poor for gold and we’ve seen exactly that play out this week.

Interest Rates and Gold Support Levels

The 4.30% level on the 10-year yield continues to be an area where you see risk appetite flip. And while many traders believe that gold is a safety asset, and it very well can be at times, the reality is lately it is not acting as such because traders are trying to price in the idea of energy inflation as energy may become a little more scarce and therefore keep the Federal Reserve tighter for longer, driving rates higher.

In this environment, it looks very much like a market that is very sensitive to that 4.30% level and I think we’ll continue to be. The $4,600 level is an area that I think you’ll have a lot of support at, so let’s watch that. I do like the idea of buying a dip with a little bit of a bounce, but you have to watch that 10-year yield. It has to coincide. I’ve actually had quite a bit of success trading using that as a secondary indicator over the last couple of weeks.