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Gold Markets Show Signs of Weakness Again

March 1, 2021

New York (Mar 1)  Gold markets initially tried to rally during the trading session on Monday to recover from last week’s bashing. However, we have given up those gains and it looks like the area above the $1750 level may continue to offer a little bit of selling pressure. For what it is worth, the “death cross” is about to happen, as the 50 day EMA is getting ready to cross below the 200 day EMA. While I am not a big proponent of using this as an indicator, I do recognize that a lot of people will pay close attention to it.

What I do find interesting is that we are starting to approach the $1700 level, and I think that if we break down below there is very likely the gold goes looking towards the $1500 level or maybe even lower. I think we are most clearly seen a lot of negative pressure when it comes to gold, and I think that fading rallies probably is the easiest way to get involved at the moment. I do believe that if we take out the $1800 level to the upside that could change the overall attitude of the market, but we are nowhere near doing that now and Monday has given very little in the way of confidence for the buyers from what I can see. Because of this, I think we are likely to eventually break down sometime this week and go lower. Unfortunately, we do not have the confirmation quite yet of the breakdown to get involved but short-term traders will probably continue to fade short-term rallies as long as yields in the United States continue to rise.

FXempire

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