Gold prices rose early Friday, as traders looked for a clearer market direction. Rising interest rates and fears of escalating conflict contributed to market uncertainty.
The precious metal is attempting to hold above its 200-day exponential moving average (EMA). This technical level is a significant factor for market participants.
A sustained rally past the $4,600 level could open the way for a move toward the 50-day EMA. However, $4,600 has acted as a ceiling, proving difficult to break consistently.
Should gold fall below the 200-day EMA, it may test the $4,000 level. This large, round figure holds psychological importance for traders. Volatility is expected due to spiking U.S. interest rates and war headlines.