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Gold Losing Ground In 2021

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#Gold has lost ground so far in 2021 after posting its biggest annual gain in a decade on the back of the devastating effects of the pandemic, vast stimulus, and rising haven demand.

Now, Federal Reserve officials are saying that more fiscal support and the mass distribution of vaccines could lead to a strong U.S. economic recovery in the second half, setting the stage for a discussion about tapering of bond buying before the year-end.

While gold had been pressured by the dollar’s rebound and rising yields, markets appear to have temporarily ignored the prospects for rising inflation and fresh stimulus, according to Shayne Heffernan. “That means the sell-off in gold could be temporary, and the downside may be cushioned by fresh stimulus to be announced by Biden,” he said.

Gold closed up 9.645 at 1,854.306. Volume was 8,900% above average (trending) and Bollinger Bands were 8% wider than normal.

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

Gold is currently 0.7% above its 200-period moving average and is in an upward trend.

Volatility is extremely high when compared to the average volatility over the last 10 periods.

There is a good possibility that volatility will decrease and prices will stabilize in the near term.

Our volume indicators reflect very strong flows of volume into Gold (bullish).

Our trend forecasting oscillators are currently bullish on Gold and have had this outlook for the last 19 periods.

Overall, the bias in prices is: Downwards.

A white body occurred (because prices closed higher than they opened).

During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles.

During the past 50 bars, there have been 26 white candles and 23 black candles for a net of 3 white candles.

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S. Jack Heffernan Ph.D. Economist at Knightsbridge holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Crypto, Mining, Shipping, Technology and Financial Services.