February 8, 2021 - (Gold Market Wire) - The support levels we painted at the end of last week worked fairly well. We got through the horizontal one we mapped out, and stopped about 15 cents shy of the main trend line we described....putting in a low of $25.90 Here's last week's ID of the levels:

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From there we have bounced nicely and have cleared the gap around $27.00. So far, so good, but hardly an exciting start to the week.

A cursory look at the above charts tells us that the round numbers are in play - roughly. The levels of $25.00 and $26.00 are real support, and we have touched down on them repeatedly. That gives us the short term outlook. Long term, we can see how the recent high has created the top end of the channel we are now in:

Against this rather lack-lustre opening to the week, we note that the US Dollar, which has been on a tear lately, may be preparing for a move back down (i.e. up in the below chart as the cross is inverted). Friday made the sign of a reversal, but we wouldn't expect too much action on the downside. The downtrend has been touched, and might try for a move above the line. Still, the Dollar remains strong - as much as everyone in the Gold market dislikes that. If the Euro can't muster a move here, we will probably resume the rally. These days, few markets are calm, and choppy action is the order of the day.

Lastly, Gold is doing next to nothing. The $1850 level has failed, all eyes are on Silver and the Dollar, and the 'big' Metal looks uninteresting and consigned to working its way lower. The recent craziness in Silver did little to encourage Gold prices, and that, along with the Dollar's strength, is keep any rallies at bay.