The gold markets have done very little during the trading session on Monday, which should not be a huge surprise due to the fact that the Americans were away for Presidents’ Day. It is not that there was not trading going on, it shows that a huge portion of the market was not at work. That being said, the market is likely to go back and forth in general, but it does have a slight negative tilt to it. Keep in mind that the $1800 level underneath should continue to be supportive, and most certainly the $1750 level would be as well. That being said, I do not believe that we break through there very easily.
Gold Price Predictions Video 16.02.21
The marketplace is moving upon the idea of stimulus and what is going on with the US dollar. If the US dollar continues to struggle a bit, that could help gold but one of the things that is most decidedly working against gold is the interest rates in the 10 year yield. As that rises, it makes gold more expensive because you have to pay to store it and of course you get no yield whatsoever from holding. Traders tend to look towards paper when they can make a return on it as opposed to taking on any risk from gold. After all, you will be guaranteed to make your principal back through treasuries, but you cannot necessarily say that about gold. You have the default position of simply holding onto a note or a bond to get your money back. (Although of course there can be a slight loss due to inflation.) Nonetheless, watch the interest rates to see what happens next.
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