Gold Price Forecast – Gold Continues to Consolidate and Wait

Gold Markets Technical Analysis

Gold pulled back just a little bit in the early hours on Friday as we continue to see more sideways action from a longer-term standpoint. This does make a certain amount of sense because quite frankly, the interest rate environment in the United States continues to see higher rates overall, and that does work against gold. If we do pull back from here, I think there’s plenty of support at the $2,600 level to keep this somewhat afloat, at least at the moment. On the upside, we have the $2,700 level, which of course will offer resistance.

And in fact, I think we’re basically in the middle of overall short-term consolidation. With this being the case, I think we’ve got the market just trying to sort out where it wants to go in the longer term. And in the meantime, we’re just killing time back and forth. Short-term traders who like range-bound systems will probably love this market right now. And with that being the case, I think you also have to be cognizant of what’s going on with the 10-year yield in America.

If it starts to climb and starts to go towards that 4.6 level again, that could be very negative for gold. On the other hand, if rates really start to fall, you could see more of what we saw during the Thursday session where money flows into gold. All things being equal, this is an uptrend, and I don’t choose to fight that anytime soon. I just think that we have to work off some of the gains that we had last year was actually pretty good for the gold market.

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