Gold Weekly Price Forecast – Gold Markets for Massive Hammer Off Support

Gold markets have fallen hard during the course of the week, reaching down towards the $1680 level as we had a bit of a “flash crash” on Monday. We have since turned around and wiped all of that out, so the question now is whether or not that was true capitulation? If it was, then it is very likely that we will see traders trying to pick up “cheap gold”, but you also need to pay close attention to the 10 year yield, because it will have a major influence on what happens with the US dollar, which of course will have a major influence on what happens with gold. By forming the massive hammer that we have, this could lead to something big but keep in mind that the $1835 region continues to be a massive barrier that we have yet overcome.

Gold Price Predictions Video 16.08.21

If we were to turn around and take out the $1680 level, that would be catastrophic and open up the possibility of a move down to the $1500 level next. That obviously would accompany a strengthening US dollar, which is something that acts as a wrecking ball against quite a few financial assets, not just this one.

This is all about the 10 year yield, and therefore as it goes higher it is likely that we would see gold suffer as it becomes much easier to hold onto paper than it does to pay for storage for precious metals, and I think that is one of the things that you have to pay attention to here. Nonetheless, this candlestick is a very interesting signal.

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This article was originally posted on FX Empire