Gold Price Forecast – Gold Markets Continue to Struggle

Gold markets have been struggling a bit during the trading session on Friday again, as we have no real directionality at the moment. I do think that eventually we will probably see some type of bigger move but right now it is obvious that we just do not have anywhere to be. Most of this is because the market is being held hostage by the 10 year note again, which has been selling off, producing higher yields. Higher yields in the bond market is an ugly thing for gold, simply because it is easier to clip coupons in the bond market than it is to pay for storage for gold. The higher yields go, the less attractive gold becomes.

Gold Price Predictions Video 22.03.21

At this point, the market is likely to continue to look towards the $1700 level as support, and as long as it holds gold has a chance. However, if we were to break down to another fresh new low, that would more than likely unwind this market down towards the $1500 level. That is an area that I think would cause a lot of support and therefore be worth paying attention to. With that being the case, I think it is only a matter of time before we have to make a bigger decision but right now it appears that the market is content to simply sit around and wait to see what happens in the bond market. Remember, those higher yields will drive up the US dollar, which of course works in the opposite direction most of the time. It is not until we break above the $1800 level that I am comfortable buying gold because of what we have seen lately.

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