Gold Weekly Price Forecast – Gold Markets Pull Back From Major Downtrend Line

Gold markets have rallied significantly during the course of the week but have also pulled back from a major downtrend line. That being said, the market is likely to continue to see lots of choppy behavior, and as a result I anticipate that we will continue to see volatile trading. Quite frankly, this is a market that I think it is easier to trade on the short-term charts, although if we break above the highs of the last couple of weeks, it is very likely that the gold market will go racing towards the $1835 level. That being said, it is going to take a significant amount of momentum to make that happen.

Gold Price Predictions Video 01.11.21

The gold markets are more likely than not going to go lower, and if we break down below the $1750 level, then it is likely that we could go much lower, perhaps reaching down to the $1700 level. The gold markets of course are highly influenced by the US Dollar Index, and therefore you need to pay close attention to what is going on there. The US dollar has a huge negative correlation to the gold market, and therefore one eye on that chart certainly makes quite a bit of sense.

Gold continues to suffer at the hands of higher interest rates in the United States, because quite frankly it is cheaper to carry paper than it is massive amounts of metal, as the storage fees have a major influence on what happens next. Despite the fact that you have always heard that gold is a hedge on inflation, that is only of bond yields are not rising at the same time.

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire


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