Gold Weekly Price Forecast – Gold Markets Pull Back From 50 Week EMAGold markets initially tried to rally during the course of the week but then pulled back again as they cannot seem to pick up enough momentum to continue going higher.
Gold markets have initially tried to rally during the course of the week but gave back the gains to form a negative candlestick. The 50 week EMA sits just above and of course perhaps more importantly the $1800 level, an area that has been important. At this point in time, gold continues to get hammered based upon the fact that the yields in America are offering enough of a return that they are offering a “real rate of return”, meaning that traders can clip coupons in the bond market and still make money. The alternative would be to buy gold and pay for storage, something that of course costs money.
Gold Price Predictions Video 03.05.21
The candlestick itself is not necessarily overly negative, but if we were to break down below the bottom of the candlestick it is likely that we could go looking towards the $1750 level, possibly even the little double bottom underneath the $1700 level. On the other hand, if we were to break above the $1800 level it is likely that we go looking towards the $1850 level, followed by the $1950 level.
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The one thing that I think that we probably can count on is that we are going to be very choppy and sideways, so at this point in time it is difficult to get overly aggressive in one direction or the other until we get a rather impulsive candlestick in one direction or the other. With the US dollar strengthening on Friday, it did color the candlestick a little bit redder than the week actually suggested prior.
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