Gold Forecast 01/05: Gold Bounces As US Rates Pull Back

(MENAFN- Daily Forex)

The gold market has rallied a bit during trading on Thursday as interest rates in America did pull back just a bit. That being said, this looks a lot like a market that is doing everything it can to sort out whether or not we can continue the overall consolidation we had been in previously.

The $4,600 level is an area that a lot of people watch closely and should continue to be monitored as it is an important level going back quite some time. With this being the case, I think that there is a little bit of a higher climb. It might be a bit of an uphill struggle, but ultimately this also looks a lot like a market that I think will just move to the 10-year yield and other yields as far as that's concerned, but the 10-year is the one I watch the most Pressure and Market Volatility

The gold price is back below the 4.40% level and if we continue to drift lower, that opens up gold to a bit of bullish pressure. Ultimately, I suspect we have a market that will try to find its way forward to the upside, but I also recognize that we are going to be held prisoner by potential shocks coming out of the Middle East and headlines throwing bond markets all over the place.

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With that, I remain long-term bullish, short-term very cautious. Position sizing will be an absolute crucial thing to take into account. I don't have any interest in shorting and I do like the idea of going long, but I would not bet a huge amount of money on it as this continues to be a very volatile place to live.

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