Gold Weekly Price Analysis – Tough Week For Gold as Rates Take Center Stage

Gold Markets Weekly Technical Analysis

The gold market broke down rather significantly during the week and at one point was below the $4,600 level as rates in America spiked. This is an ongoing concern, but when you look at the longer-term weekly chart, it certainly puts things into perspective. So the question at this point in time isn’t whether or not gold can fall. I think it can. Whether or not the trend has changed, it’s a real question, and I don’t think we’re anywhere near that.

Long-Term Trend vs Short-Term Pressure

And in fact, I’d say we probably have to break down below the $4,000 levels to truly have that conversation. So, with that being the case, I think you have to look at this as a market that is offering a buying opportunity on these dips. But I also recognize that it is a market that will remain very noisy and you will have to watch the interest rate situation in America.

The 10-year yield can break above the 4.35% level, that will cause even more chaos and probably cause a lot of damage to the gold market. We are in an area right now, though, that I would expect to be relatively well supported, so I’m still bullish. I just recognize that maybe the strong straight-up in the air run might be done. A little bit of consolidation between maybe $4,500 and $5,500 would probably do the market a world of good.

That being said, like I mentioned, the interest rate situation in America will continue to be a major problem and should be watched by those trading in this market.

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