As we continue trading in the first month of 2021, gold is getting ready to shine again.
January 21 (King World News) – Top Citi analyst Tom Fitzpatrick: This recent down move in Gold began with a bearish outside week 2 weeks ago at the January trend high. It is possible this is just a function of:
* Choppy January markets
* The recent pop in nominal yields (like we saw in November)
* A Short Term bid tone to the USD
* Some short term Crypto/Gold rotation dynamics.
This fall began from a similar peak as that seen in November last year and (so far) the fall has been shallower than seen then.
Then, as now, the fall came as US nominal yields (10 Year) spiked over 20 basis points in a number of days. However that fall gave way to renewed gains in December-January. Strong supports have so far held, in particular the 76.4% pullback level. While these continue to hold we can be reasonably confident that this can provide a platform for renewed gains.
What are those support levels to watch?
$1810.71: This is the 76.4% pullback of the $1,764.80-$1,959.35 rally and held on a closing basis on Jan 18th. While this holds it could become a platform for a renewed rally. If it gives way then more important supports come into play.
Is Gold Getting Ready To Shine Again?
$1,781.78: This is the 55 week MA, which Gold has been above on a weekly closing basis since December 2018 (over 2 years).
$1,765.43: This is the May 2020 high which gave way in June 2020 opening up the way for an acceleration to the all-time high at $2,075 in August.
$1,764.80: This was the low on 30 November 2020 during the sharp correction that began after the strong multi day “pop” in US longer term yields after the Presidential election.
Silver & Gold
In addition to holding the 76.4% pullback area Gold can also post a bullish outside week if it closes this week above $1,864. (Silver would also post a bullish outside week if it closes this week above $25.90). That would paint a brighter picture for precious metals.
Such a close on Gold would suggest the potential to re-test the double highs at $1,959-$1,966.
A weekly close above this resistance between $1,959 and $1,966, if seen, would paint an even more positive picture and suggest that the bull trend in Gold is firmly back on track.
Billionaire Eric Sprott Buying
To find out which company billionaire Eric Sprott just bought a 12% stake in click here.
To listen to James Turk discuss the takedown in the gold and silver markets and why the price of silver will skyrocket just like Bitcoin CLICK HERE OR ON THE IMAGES BELOW.
To hear Alasdair Macleod discuss the takedown in the gold and silver markets and what to expect next CLICK HERE OR ON THE IMAGE BELOW.
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