Gold Price Forecast – Gold Markets Break BarrierGold markets have broken down below the $1750 level during the trading session on Friday as yields continue to kill the idea of holding gold as of late.
Gold markets have had a rough Friday as they have broken through the crucial $1750 level. This is an area that has been supportive for a while, so at this point in time I think that as long as yields continue to rise in the 10 year note, gold is going to continue to struggle. We are at the very bottom of the overall range, and this means that we are probably going to continue to see a bloodbath in the gold market.
Gold Price Predictions Video 01.03.21
With that being said, if we break down below the $1700 level and opens up another move to the $1500 level. I would anticipate a certain amount of psychological support there if nothing else, and of course I think that there is a significant amount of structural support as well. With that being the case, I do believe that dips will be bought into going forward, but in the short term it certainly looks as if the gold market is in serious trouble. I think that the fact that we are about to see the “death cross” happening, a lot of people will pile into this trade as well. Gold is a great longer-term investment from what I see, but I think you are going to get an opportunity to pick it up at very low levels at this point.
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On the other hand, if the bond market suddenly rallies again, that could throw money back into the gold market, but right now it certainly looks as if the 10 year is in serious trouble, therefore yields should continue to rise, fulfilling the cycle that we have been in for a while.
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