Gold Weekly Price Analysis – Gold Tests $4,000 Support as High Yields Weigh

Gold Weekly Technical Analysis

The gold market has fallen during the course of the week to reach the $4,000 level again. This is an area that previously had been important a couple of times so it’s not a huge surprise to see that the markets are hanging around here, but if we close the way it looks right now, it would definitely show a certain amount of negativity.

The market breaking down below the $3,900 level would slice through the bottom of a range of support that we have seen for some time. Short-term rallies at this point continue to see a lot of selling pressure and ultimately, the market certainly looks as if it is struggling to figure out what to do next. The market breaking above the $4,200 level would send the market outside of the consolidation that we have seen for 30 days.

High Treasury Yields and Breakdown Risk Drive Bullion Sentiment

Ultimately, this is a market that continues to see a lot of choppiness, a lot of noisiness. I think ultimately we are hanging on to a very important support level, and giving that up could bring in more momentum. After all, the market has taken a decidedly ugly turn over the last couple of months as non-yielding assets such as gold continue to take it on the chin.

Traders have preferred to go to the higher-yielding Treasury markets, and despite the fact that yields have slipped a little bit, they are still historically high. Because of this, the market continues to see a lot of concerns about jumping into a big uptrend without some kind of change in attitude, and external factors will need to be aligned.

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