Gold Price Forecast – Gold Markets Bounce From Lows

Gold markets turned around to show signs of life again during the Wednesday session, but quite frankly it looks a lot like a bit of a short-term “double bottom” that is more or less a signal that people should be paying close attention to. However, if we break down below the lows from the last couple of days, that will send this market much lower, perhaps reaching towards the $1500 level. Yields in America rising continue to push gold markets lower, and therefore I think you need to be very cautious about trading this market. Quite frankly, it would not take a huge amount of imagination to see this market breaking down through that barrier and continuing.

Gold Price Predictions Video 01.04.21

To the upside, if we can break above the $1750 level, then it is likely that we would go looking towards the $1800 level where the 200 day EMA is currently found. Ultimately, this is a scenario that I think will see a lot of resistance in that vicinity, so I think it would be a very tough to trade to hang onto if we do see that move play out. All things being equal, a breakout above that 200 day EMA could be a massive trend change but right now we would need to see a massive turnaround in the bond markets to see that actually come to fruition. With that being the case, I think that we are going to continue to see more downward pressure than up, so I certainly trust selling more than I trust buying. However, if the 10 year yields dip below 1.5%, we could see gold take off suddenly. Until then, I am very suspicious about gold.

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