Gold Price Forecast – Gold Markets Hanging Onto Support Level

Gold markets have been trying to hang on to the $1700 level for a while, which is a crucial support level. The market has formed a short-term double bottom, and if we can hang on to it, this could be an excellent turnaround. I do not anticipate this happening though, because quite frankly the interest rates in America continue to climb and of course gold would not have reacted to it on Friday. The bond market was open, but we gained something like 3.6 basis points, which is toxic for gold. This tends to make the US dollar strengthened, due to the fact that there is more yield to be had in that country. Think of it this way: would you rather pay for storage of gold and not earn any type of return, or would you rather simply clip coupons on a bond and make a real rate of return?

Gold Price Predictions Video 05.04.21

The $1750 level should offer resistance, especially now that we are starting to see the 50 day EMA reach towards that area. However, if we were to break above there then it is likely that the market could go looking towards the 200 day EMA, which is closer to the big $1800 figure. On the other hand, if we break down below the lows that we have just made, then I think what we will probably go looking towards is the $1500 level, which is a large, round, psychologically significant figure and an area that would of course attract a lot of attention. This market should simply move opposite of yields overall, so make sure you have an idea on what those are doing.

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