Gold: "I like the commodity"

18 Feb 2021

Gold getting hit by rising bond yields, a side ways trading dollar & risk appetite in broader markets. But... I like the commodity. My longer term view is still 3000 gold. If it starts breaking down from here though I would worry about a technical sell off on broken support (Could be looking at around 1600s in that scenario). But if we get a contraction in volatility around these levels and let people get comfortable at this support you could easily see that 2000 mark broken in just a few weeks once gold gets moving and say goodbye to it for a long while. For this to happen watch 10yr yields like a hawk and hope for a reversal (Based on fed buying potentially if a taper tantrum comes). Also dollar would have to continue its slide down towards it's next support around the 88 mark. Long or short... Good luck with your trades!