Gold Weekly Price Forecast – Gold Markets Fail to Hang on to GainsGold markets initially shot higher during the course of the week but by the time Friday started to close out, we formed a less than impressive candlestick.
Gold markets initially shot higher during the course of the week but have given back gains in order to form a less than impressive candlestick. At this point, it looks as if we are going to seriously threaten the 50 week EMA, which of course is a technical indicator that a lot of people will pay attention to. Ultimately, if we break down below there and perhaps even more importantly the $1750 level, then gold could be in serious trouble. That being said, if we were to turn around a break above the top of the candlestick for this past week that could be a very bullish sign as it would turn it into a “inverted hammer.
Gold Price Predictions Video 15.02.21
I do think that gold will continue to be very noisy due to the fact that there are a lot of questions as to stimulus, inflation, and the bond market. The dip that we have seen could offer a nice buying opportunity from the longer term, but we need to see some type of bullish action in order to justify putting money to work from a longer-term standpoint. The market continues to see a lot of concern when it comes to interest rates are rising in the 10 year note, which makes treasuries much more attractive than gold simply because it is a guaranteed yield, something that gold does not offer. However, if interest rates drop again then we could see gold get a little bit of a boost. It is a bit ironic, but it appears that gold is not necessarily the “safest investment” at the moment. Volatility is probably going to be a norm.
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