Gold market fell initially during the trading session on Monday but then turned around to show signs of life again.
The market is very noisy in general, and I think it is a market that of course has a lot to think about.
10-year yields in America are at 4.6%, that's outrageous, and they're not really showing any signs of letting up. If that's going to be the case, I think you continue to see a lot of trouble with the gold markets and precious metals in general.
I do think that anytime this market pulls back, you're looking very likely to see gold market rally as a result. The interest rates dropping is helpful in a non-yielding asset such as gold.
Technical Levels and Macro Drivers
We are hanging around the $4,600 level means that we are in an area that will attract a lot of attention, and if we can break above there, then it's likely that we could go looking to the $4,750 level. If we break down below the low of the trading session on Monday, that could open up the possibility down to moving down to the 200-day EMA.
Top Regulated Brokers
All things being equal, this is a market that I think continues to be noisy, and I do think that it is very choppy, and therefore, I think the $4,600 level is probably a bit of a magnet for price.
Eventually we'll break out, and I think it resolves itself to the upside eventually, but we need to get more stability and more certainty coming out of the Middle East so we can start pricing out some of the inflation due to energy shocks that the bond market is currently focused on.
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