Gold Weekly Price Forecast – Gold Markets Get Hammered

Christopher Lewis
·2 min read

Gold markets initially tried to rally during the week but then broke down significantly during the Friday session to form a very nasty weekly candlestick. In fact, we finally broke down below the $1750 level, an area that is significant support. At this point, it looks like we may make a serious attempt to break down below $1700, which could open up a move down to $1500. I do think that somewhere around $1500 you would see a significant amount of support and interest in gold, so quite frankly I am kind of hoping for this so that I could buying gold at a better price.

Gold Price Predictions Video 01.03.21

With all that being said, if we turn around in recapture the $1800 level it would negate a lot of the negativity. This would almost certainly have something to do with people buying bonds to drive down the yield in those markets, which have hit as high as 1.66% in the 10 year note. While not historically high-yielding, it has the highest yields that we have seen in quite some time and perhaps more importantly, the market has seen yield spike, not simply drift higher. If that is the case, it tends to freak a lot of traders out, and they start dumping their gold right away as it costs money to store gold while you get the clip coupons when it comes to a bond. At this point, everything took it on the chin as the US dollar strengthened during the day on Friday which a very bad week in general for precious metals overall.

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This article was originally posted on FX Empire