Gold Weekly Price Forecast – Gold Markets Form Weak Candle

Gold markets initially rallied during the course of the week but gave back the gains to form a bit of a shooting star as we are sitting on top of what should be major support. If we break down below the lows of the previous weekly candlestick, I do believe that the gold market has much further to go, possibly down to $1500 in the next leg. As I am sure you have been told 100 times by now, yields in America continue to cause a major problem as the 10 year has hit 1.75%. While it does not sound like much, clipping a coupon and getting a real rate of return is much more attractive than paying for storage when owning gold.

Gold Price Predictions Video 22.03.21

This is not to say the gold will not serve a function, it is just that in this interest rate environment right now, gold is going to lose some of its luster. I do think that somewhere underneath we will see gold take off again, but we need to see bond markets calm down first. Right now, it looks as if we are going to continue to see a lot of volatility, which in and of itself does not help gold either. I know that a lot of you have been taught that gold is a great inflation hedge, but it is only a great inflation hedge when bonds do not keep up with said inflation. Right now, bonds are wasting to keep up and perhaps even surpass inflation, at least as far as the yields are concerned. Ultimately, it is not until we break above the $1800 level on at least a daily close that I am interested in buying.

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