Gold Technical Analysis
The gold market finds itself sitting on a demand zone that extends from $4,200 down to the $4,000 level. We did go sideways a bit during the course of the week, right around the $4,200 level.
Ultimately, this is a market that is moving on interest rates. With interest rates in America drifting a little bit lower, that is giving us a little bit of a boost. Whether or not we can continue to go higher remains to be seen.
Non-yielding Assets Like Gold Hate Higher Rates
A lot of traders are going to be watching the energy market. The crude oil market, of course, is a major influence on what is going on with rates, with supply being a major concern. That has been the story since the war started. Now, the question is whether or not those rates can continue to roll over. If they do, that could give us a little bit of relief here in the gold market. This is the hope, at least.
From a technical analysis point of view, each rally is getting lower, producing lower highs. We have not broken down to a fresh new low, though, so if we turn around here, it could be a change in attitude.
I think this is a market that remains very noisy going forward, mainly due to the fact that not only will interest rates be an issue, but geopolitical issues driving those rates are one of the biggest problems. It is just too unpredictable. Regardless, I do think there are some buyers in this general vicinity.
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