Gold Price Forecast – Gold Continues to Struggle Breaking Out

Gold markets have initially tried to rally again during the trading session on Thursday as we have seen a spike in the interest rate complex yet again. All things being equal, that is toxic for gold markets. With that being said, we need to keep an eye on the interest rate in the United States as it continues to climb in some of the bond markets. That being the case, the inverse correlation remain strong, and therefore I like the idea of watching both markets and trading gold accordingly.

Gold Price Predictions Video 19.03.21

To the upside, the $1800 level would be a significant resistance barrier, and therefore we need to pay close attention that if we do break out. If we were to rally and breakout above the $1800 level, it could send this market up another $50. On the other hand, if we turn around and break down below the lows of last week, that opens up a huge move down to the $1500 level. That of course would be a major sell off, but I think at that point we would see a lot of value hunters coming back into the fold.

All things being equal, this comes on the yields and nothing more. The market has been in a downtrend for a while, but it is worth noting that we are near the 61.8% Fibonacci retracement level, an area that attracts a certain amount of technical trading, but the $1700 level also was previous resistance so it should continue to be important one forward, as the markets are prone to “market memory” in these big areas. At this point, the most important thing you can do is keep your position somewhat small.

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