Gold Price Forecast – Gold Markets Await Central Bank Intervention

Gold markets have been very quiet in general during the trading session on Wednesday as we await the FOMC meeting results and more importantly the question and answer session. All things being equal, this is a market that I think is trying to make a longer-term decision based upon the fact that we are sitting at a potentially major support level, and as a result it is likely that we would see a lot of interest here.

Gold Price Predictions Video 18.03.21

One of the most important things to pay attention to is the bond markets, as the spike in yields have worked against the value of gold, as it is much easier to simply clip coupons in the bond market than it is to pay for storage of gold. That being said, the market is likely to continue to see a lot of noise, but if the bond yields get pushed lower, that will help gold as the 61.8% Fibonacci retracement level of course would be a place that a lot of people would be paying attention to, not to mention the fact that the $1700 level is a large, round, psychologically significant figure.

On the other hand, if we break down below the most recent lows, then the market is probably going to fall apart and go looking towards the $1500 level. That obviously would be a major figure that we would be paying close attention to, and therefore I think we would see a potential reversal at that point as value hunters could come back in. However, we would need yields the fall at that point as well. Remember, the correlation between yields in the bond market and gold is inverse.

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