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Christopher Lewis

Gold markets at this point are overbought but I do like the idea of buying dips as they occur. Quite frankly, this is a market that I think has further to go but is much more overbought than it has been in quite some time, so I am looking for an opportunity to buy dips as it represents “cheap gold.” The Federal Reserve continues to prime the pumps, so at this point fiat currency continues to struggle, but the US dollar of course is the one that most people pay attention to.

Gold Price Predictions Video 07.08.20

Gold has been rallying against most other fiat currencies for some time, so perhaps the futures contract is simply playing “catch up” to gold priced in Euros, Pounds, and the like. Furthermore, we also have a lot of fear out there when it comes to the economic situation so obviously gold does attract a lot of attention due to that as well.

Ultimately, I do like the idea of buying on dips and adding to a position as we go along. I think eventually gold goes looking towards the $2500 level, but we cannot go straight up in the air forever. With this, it is very prudent to look for value instead of simply jumping in with both feet. I see the $2000 level as a major support level due to not only structural trading but also the psychology of the big round figure. I see no opportunity whatsoever in trying to short this market, and probably will not for some time.

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

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