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Gold Price Forecast – Gold Markets Continue to Look Very Sick

By:
Christopher Lewis
Published: Mar 30, 2021, 15:26 GMT+00:00

Gold markets have shown themselves to be rather negative during the trading session on Tuesday as we have broken through the $1700 level yet again.

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Gold markets have really struggled at this point, breaking through the $1700 level quite handily as the US dollar continues to strengthen against most currencies. As long as yields rise in America, this is going to continue to be a major problem for the gold market. With that in mind, I believe that we are likely to see a lot of noise in this general vicinity but if we do break down to a fresh, new low, that could send this market into a bit of a tailspin. At that point, I would anticipate that the gold market goes looking towards the $1500 level which is a major support level underneath.

Gold Price Predictions Video 31.03.21

On the other hand, if we were to turn around and take out the $1750 level, then it would be bullish enough to have me thinking that gold had further to go to the upside and perhaps we could start buying again. This needs to be accompanied by a falling US dollar and more importantly falling US yields. Right now, that does not look likely to happen so therefore it is not really on my radar. I believe it is only a matter of time before gold breaks down and we go looking to much lower levels.

The size of the candlestick is rather bearish, but we have seen a little bit of a fight at these lows. Whether or not we can hang on is a completely different story, and it certainly looks as if the downward pressure continues. I feel at this point it is only a matter of time, so I am looking at short-term rallies as opportunities to sell the gold market, as the pressure continues to mount on the yellow metal.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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