Gold Weekly Price Forecast – Gold Markets Continue to Stabilize

Gold markets fell a bit during the course of the week to show signs of continued choppiness, as we have seen the $1700 level offer support for the last month. This is an area that has been important in the past for support, so the 61.8% Fibonacci retracement level being there as well also helps. Ultimately, this is a market that I think will see a lot of noisy behavior based upon the idea of interest rates in America being so front and center.

Gold Price Predictions Video 29.03.21

If the interest rates continue to rise, it is very likely that gold markets would break down, but we need to break down below the bottom of the last couple of candlesticks in order to truly break through the support level and go much lower. Ultimately, that would open up the possibility of a move down to the $1500 level, which is a large, round, psychologically significant figure, and an area where we had seen buying at previously.

At this point, it would take another rise in yields to break down, and it must be said that the last couple of weeks have been relatively stable, so the question now is whether or not we are seeing gold finally strengthen? I think it is a little early to make that argument but if we were to break above the $1800 level, a lot of longer-term traders would be getting involved and picking up gold at that point. However, if yields continue to reach towards the 2% level, that could be very toxic for the market. At this point, it should continue to be a directly negative correlation to the 10 year note yields.

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