Gold is Below 100-Day Average!

Realizing the highest premium of the last 10 years in 2020, gold fell sharply in the first week of the new year. Gold is trading below the 100-day average. Gold prices closed the first week of 2021 sharply. Along with gold, silver prices also declined due to the recovery in the US dollar and the rapid increase in US bond yields. The gold with more than 3 percent loss, fell to the level of 1,849. With the drop in gold prices this week, a loss occurred for the first time in the last 6 weeks. It was noted that the weakening in gold fell below the 100-day moving average, which is one of the critical technical levels. Similar movement took place on the silver side. Silver fell close to 10 percent to $ 25. This loss in silver showed the sharpest decline since September 21. There were losses in platinum and palladium, along with gold and silver. Despite the loss in gold prices in the first week of 2021, the optimism of commodity investors was also reflected in the indicators. According to information compiled by Bloomberg, the number of long positions in commodities in the week ending January 5 was recorded as 2.3 million. This level was the highest since January 2011. The expectation for a rise in gold prices reached the peak of 16 weeks.