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Christopher Lewis

Gold markets have broken down a bit during the trading session on Thursday, slicing through the 50 day EMA. That of course is an indicator that a lot of people pay attention to. Ultimately, I think that the fact that it has gone flat tells you that gold is not quite ready to take off to the upside for a bigger move quite yet. However, the $1900 level underneath is significant support, just as the $1850 level should offer support given enough time. I do believe that we are looking at a scenario where the markets will continue to see a lot of choppy behavior, and perhaps reaction to the stimulus stocks or possibly the lack of progress.

Gold Price Predictions Video 23.10.20

The knock on effect of course is that the US dollar strengthens, which weighs upon the strength of the gold market, at least in the short term. I believe that we will continue to see more downward pressure than up, but longer-term is still very bullish for gold as central banks and governments around the world look to flood the financial system, which of course has people looking for “hard assets.” Gold is essentially the ultimate hard asset.

To the upside, I see the $1950 level as an area that begins pretty significant resistance extending towards the $2000 level. Once we get above the $2000 level, this is a market that will continue to go much higher and truly take off to the upside. In the meantime, I look at pullbacks as buying opportunities, but I would not jump “all in” on one particular move.

For a look at all of today’s economic events, check out our economic calendar.

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