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Gold Midday Technical Analysis October 31

Gold markets fell during the trading session on Wednesday, but they look as if they are trying to find a bit of support somewhere near the $1215 level. The $1220 level above should be resistance. If we can break above that level, then I think the market could go much higher. However, we are at a serious inflection point.
Christopher Lewis
Gold Midday chart, October 31, 2018

Gold markets are acting a bit skittish during the trading session on Wednesday, reaching down towards the $1215 region before bouncing just a little bit. However, if we see US dollar strength, that could continue to weigh upon Gold markets in general. If that happens, I would anticipate a move down to the $1200 level, possibly even lower than that but not much further, because we have seen such a massive bounce from the $1185 level. At this point, I do like Gold longer-term but I also recognize that there are a lot of moving pieces right now, so it’s going to be difficult to jump in with a full position.

Gold Price Video 31.10.18

I’d like to point out that the $1212 level had previously been resistance, and it should now be supported. At this point, it’s likely that the buyers will be interested in the value aspect of gold, but I’m not completely convinced, so therefore trading the futures market will be very difficult as it can get expensive. At this point, I do like getting a little bit of exposure to the metals markets, simply because of the technical analysis. Longer-term though, it’ll be interesting to see how this plays out because quite frankly we need some US dollar weakness to help commodities in general, which of course Gold and other precious metals will be immune to. Beyond that, some type of massive selloff or fear trade could help as well.

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