Gold Price Outlook – Gold Continues to Fight Against Higher Rates in US

Gold Markets Technical Analysis

The gold market pulled back just a bit during the early hours on Tuesday as we continue to see interest rates climb on the 10-year note in America, causing some problems. That being said, I do see plenty of support between here and the $2,600 level. So, I’m not necessarily looking to short gold. I just think it doesn’t have a lot of momentum right now.

The Federal Reserve meets later this week of course, that could be a major catalyst for where we go next. So, keep an eye on that. But ultimately the $2,600 level is what matters to me. We do also have a trend line that we’ve been following since the beginning of the year. So that is worth noting, as it is near the $2,600 level. Also, above we have the $2,700 level, which has offered a bit of resistance. So, I think that is something that you need to pay attention to. If we can break above it, we could slice through the double top that was formed over the last couple of weeks.

Either way, I think you’re somewhat neutral on gold at the moment, at least until we get through the Federal Reserve meeting and really at this point in time, I don’t know that they’re going to move the goalpost very far because they’re going to cut 25 basis points, but the bond market doesn’t seem to care, they’re causing rates to rise again.

So, we have a showdown between bond traders in the central bank and gold, of course, is somewhat stuck in the middle because it does not act well in high interest rate environments typically, but it also is a hedge against geopolitics and other problems with instability. And let’s be honest here, we’ve got plenty of that. So, I think that’s what the push and pull is about. As things stand right now, I’m pretty ambivalent and neutral about gold. Longer term, I think it does go higher  but right now there’s not a lot going on.

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