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Gold Price Forecast – Gold Markets Pullback Due to Rising Yields in America

By:
Christopher Lewis
Published: Feb 24, 2021, 16:43 UTC

On Wednesday, the gold markets pulled back a bit due to the 10 year yield spiking in the United States, which of course is toxic for gold.

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Gold markets have pulled back a bit during the trading session on Wednesday as we have seen the 10 year yield spike to just above 1.40% during the day. That is negative for gold as it is cheaper to simply clip coupons in order to benefit rather than to pay for the storage of gold. I do think that this is going to continue to be a major issue, and most clearly the $1750 level is an area to pay close attention to. If we break down below there, then it is likely that the gold markets will get absolutely hammered, which would probably send this market closer to the $1500 level before it is all said and done.

Gold Price Predictions Video 25.02.21

On the other hand, if we turn around and recover the 200 day EMA, perhaps with the yields dropping in the United States, that could send gold much higher. That being said, I do think that longer-term the gold market will go through the roof, but we may need to pull back significantly in the meantime in order to build up the overall bullish pressure. On a daily close below the $1750 level, then I would be a seller of gold. In this general vicinity though, I am not looking to short this market, because there is so much in the way of noise in this general vicinity. I think we continue to see a lot of back and forth which of course means that we will probably see more short-term trading than anything else. I would be a bit cautious about putting too big of a position right now, but you could day trade this market between the $1750 level underneath and the 200 day EMA.

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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