Gold: Torrid Time Ahead
Satendra Singh | Mar 05, 2021 08:58AM ET
On Wednesday, gold futures showed a steep downward move from $1,723 and quickly regained their position once again on the same day after testing the day’s low at $1,700. I find that this move looks evident enough to show the thick presence of buyers above $1,699. There is no doubt that the gold has been passing through a torrid time. Even the pullback was there and, the gold futures finally closed above the support at $1,709. I find that the gold futures could continue to shed some more shine if it breakdown below $1,690 during this week. Only a sustainable move of gold futures below $1,709 could push the gold futures towards the level of $1693.
Here, I find that the gold futures closed the last week just above the decisive point at $1714. I find the gold futures are about to enter into a supper bearish territory. The need of the hour is to analyze the flow of money out of gold.
Bitcoin seems to be turning into digital gold, due to the growth prospects of growth much more than gold. Bitcoin has caught the attention of major funds that could keep gold futures under bearish pressure for a long time shortly. I find rallies in gold futures could find selling spree above $1741 with a stop loss at $1755.
I conclude that the gold futures have finally found a base at $1,709 and shortly an upward on Feb. 4, 2021 and, only a sustainable move above $1,756 will confirm the expectation of bulls.
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