The gold market fell to kick off the week, as the interest rate markets spiked right away.
However, since the Americans don’t look likely to intervene with the latest conflict between the Iranians and Israelis.
With this and the interest rates initially spiking during the day it makes sense that gold price fell but we have since seen the market turn right back around, and as a result the market is likely to continue to see this as a market that will move on the latest headlines, not directly but by what it does to the interest rate markets.
Technical Analysis
The US 10-year has risen since and we have stabilized, so we will just have to wait and see, but as we sit just below the 200-day EMA from a technical analysis standpoint this is very interesting. If we can break above that 200-day EMA, then gold might have a shot at rallying towards the $4,400 level. Breaking above there opens up the possibility of $4,600 where the 50-day EMA currently sits. If we break down below the bottom of the candlestick for the day, then we could see this drop towards the $4,000 level. This is an area that I think a lot of traders will be interested in.
Top Regulated Brokers
For me, this is all about the interest rates in America and what they are doing; the 10-year yield is the proxy I use, although if you really want to do a deep dive you need to watch the entire yield curve. As things stand right now it does look like we are priming for a bit of a bounce, but watch those rates, they need to fall to give that a little bit of momentum. This is a market that will continue to deal with a lot of headline risks in this environment.
Ready to trade today’s Gold prediction? Here’s a list of some of the best XAU/USD brokers to check out.