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Christopher Lewis
Gold

Gold markets have broken down significantly during the trading session on Thursday to slice through the 200 day EMA like it was not even there. Ultimately, the market looks as if it is going to try to reach down towards the $1767 level. That was the scene of a major hammer that has turn things back around but ultimately, I believe that the support probably extends down to the $1750 level. If we were to break down below there, then gold would be in serious trouble for a longer-term downward move. Until then, I have to assume that there is probably going to be some type of recovery, but we certainly do not see it yet.

Gold Price Predictions Video 05.02.21

With Non-Farm Payroll numbers coming out on Friday, it is possible that we may see a lot of volatility so I would be very cautious about that. Nonetheless, I do like gold from the longer-term move, but we may not get an opportunity to “buy-and-hold” quite yet. This is why I have been talking about the idea of a basing pattern, and the idea that you should build up a position slowly. Unfortunately, some retail traders have jump in based upon the idea that if silver is going to be squeezed, then most certainly gold will as well. We clearly have seen that is not the case, and therefore I do believe that a lot of retail traders are currently dumping their gold. Another major problem for the gold market right now is the fact that interest rates in the United States are rising, which is a bit of a “feedback loop” driving the US dollar higher.

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