Christopher Lewis
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Comex Gold

Gold markets have gapped lower to kick off the trading session on Thursday, breaking down rapidly as US yields and of course the US dollar have both spiked a bit after the Federal Reserve meeting. Ultimately, this is a market that I think will continue to see a lot of interest, but not at this level. At this point in time, gold looks as if it is going to continue to correct towards the lows, as the interest rate situation is working so hard against gold.

Gold Price Predictions Video 18.06.21

While the gold market is generally thought of as a hedge against inflation, that is only when bond yields do not offer the same. Quite frankly, with bond yields spiking the way they are it is likely that we will continue to see gold suffer at the hands of that. However, if bond yields drop a bit that could drive money back into this market. If we were to break down below the recent double bottom, that could open up the floodgates even more selling.

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Gold is diverging from silver, which makes quite a bit of sense as silver actually has a larger industrial use, and that something that a lot of people will be paying attention to. As the markets have been freaking out about the Federal Reserve suggesting that they were thinking about tapering sometime in the next few years, we may get more noisy behavior like this. I anticipate that the next couple of days are going to be difficult to say the least.

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