Gold Price Forecast and Crude Oil Price Outlook: Reversals Likely Soon

Gold price and crude oil prices, news and analysis:

Gold price reversal lower likely

For most of March so far the gold price has been rising steadily, increasing from a low of $1,676.89 per ounce on March 8 to current levels not far short of $1,750. Yet that advance is looking increasingly like a modest correction within a major trend lower and the correction could soon be over, leading to more price falls.

The gains in the gold price this month have come despite increases in the yields on US Treasury bonds and notes, which make zero-yielding gold less and less attractive so, in this case, both fundamental and technical factors are pointing in the same direction – to prices heading lower.

Gold Price Chart, Daily Timeframe (November 4, 2020 – March 18, 2021)

Source: IG (You can click on it for a larger image)

By contrast, crude oil prices have been easing back, falling from a high of $67.86 per barrel on March 8 for the US contract to current levels just under $64. Yet that looks like simply a correction lower within a major trend higher that will likely resume soon.

From a fundamental perspective, oil prices have been suffering from news of rising US inventories of the commodity. However, global economic growth forecasts are being revised higher as widespread coronavirus vaccinations increase the chances of a recovery from the slump caused by the pandemic. That should increase demand for oil as increasing output fuels the need for the commodity, raising prices in the process.

US Crude Oil Price Chart, Daily Timeframe (December 7, 2020 – March 18, 2021)

Source: IG (You can click on it for a larger image)

— Written by Martin Essex, Analyst

Feel free to contact me on Twitter @MartinSEssex

This content was originally published here.

Rate:

0 out of 5 stars(0 ratings)

Subscribe to Our Newsletter

money for gold logo

Learn About Buying and Selling Gold for the Best Prices

Get the latest news and expert advice on Gold!

We don’t spam! Read our privacy policy for more info.

Leave a Reply

Related

Gold jumps Rs 310 to Rs 46,580 per 10 gram in the national capital on Monday reflecting recovery in global precious…

Read more

Gold prices rallied 25% in 2020 after having gained 19% the year before. We believe this marks still only the beginning…

Read more

Gold prices rose by Rs 179 to Rs 47,452 per 10 gram in the national capital on Monday helped by strong buying in the…

Read more

Share Great Content for Our Resource Section

About

MoneyForGold.com is a resource site created for those looking to sell their personal collection of gold - whether it’s jewelry, coins, bars, antiques, etc., anything made from gold can be sold for quick cash. We encourage visitors to signup and share quality “Money For Gold” resources.

Have a question or comment? Email us at: contact@moneyforgold.com

Navigation
MoneyForGold.com
50% Complete

Learn Where to Sell Your Gold for the Best Prices

Free 3-Minute, Practical Stories Delivered to You Everyday!
Buy, Sell, Invest in Gold Today!