Gold Weekly Price Forecast – Gold Testing Major Fibonacci Level

Gold markets have initially tried to rally during the course of the week but gave back the gains near the $1750 level. At this point, the market then dropped down towards the $1700 level. The 61.8% Fibonacci retracement level is in the same area as well, so with that being the case I think it would make a bit of sense that we could see a little bit of a bounce. In fact, we have to ask the question as to whether or not the gold market is going to save itself and continue the longer-term uptrend.

Gold Price Predictions Video 08.03.21

The overall major driving factor is probably going to be the US dollar and of course the bond market seeing yields spike. That being the case, the market is moving in direct opposition to those yields, as it becomes cheaper to simply clip coupons in the bond market instead of paying for storage of precious metals. If gold was to turn around and take out that $1750 level, then it is likely that the market could go higher, perhaps reaching towards the $2100 level over the longer term. All things being equal though, this is a market that is testing a major area that a lot of people will be paying close attention to. Because of this, if we were to break down below the $1650 level, we could see another $150 drop rather quickly as the next support level is closer to the $1500 level. All things being equal, this is a market that is being held hostage by the fixed income markets.

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