Metals remain bearish with their neverending false breakouts.

22/01/2021

Another week, another false breakout, and another massive smackdown in gold and silver prices. On Friday, gold was down 1.5%, falling to 1,840 USD, nearly completely erasing this week's gains.

Since gold is back below previous highs of 1,863 USD, the short and medium-term outlooks seem bearish. The long-term uptrend is slowly but surely ending as well. 

Rallies are very mild, and if any occur, they are met with heavy selling, which is much stronger. Therefore, the same pattern keeps repeating - gold rises a bit, makes a false breakout above some resistance, and then a massive slam down occurs out of nowhere. 

The next target for bears is near 1,830 USD, which will most likely be reached within minutes, considering the strong bearish momentum. 

The medium-term target is at November lows of 1,780 USD. Breaking below would most likely confirm the end of the long-term uptrend, with the next level to watch at around 1,675 USD. 

For now, sentiment is really negative, and any smaller rallies are being sold aggressively - all the signs of a bearish trend. 

 
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