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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