Gold price broke below $1,600 as the yields in the United States continue to rise. Last week Jerome Powell, the Fed’s Chair, hinted that the Fed would not intervene to control the long-term yields, so the dollar surged on the news.
Moreover, the dollar got a boost from the better than expected NFP report. The US economy added over 370k jobs in February, and the previous data was revised higher, fueling the surge in the dollar.
Gold remains weak despite the fact that Bitcoin, a digital alternative to gold, stays close to $50k. We may say that the two markets diverge completely, and the focus over the next period will be on what the Americans will choose to do with the new stimulus approved by the Senate over the weekend. Should we see a portion of it pouring into the stock market, gold may bounce as a reaction to a weak dollar. However, the technical picture remains weak.
Gold Price Technical Analysis
The market broke a triangle as a reversal pattern, and the measured move points to much lower levels. In other words, for the market to reach the measured move, it means that the dollar will get much stronger from the current levels. Bears may want to remain short for the measured move, with a stop at the previous lower high.
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Gold Price Forecast
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