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Christopher Lewis
Gold, Silver, Platinum, Palladium

Gold markets initially dipped during the trading session on Tuesday but found plenty of buyers underneath the turn around and show signs of life yet again. This is a market that has shown a lot of resiliency, and quite frankly I think it is likely that it will eventually break above the $1800 level. Once it does, it will have a similar effect to a “beach ball being held under water and released”, meaning that it will be like that beach ball once the inertia breaks the surface of the water in shoot straight up in the air. $1800 has been an area that has been crucial for gold for quite some time, and therefore it should not be surprised at all to see that level bring in fresh buying.

Gold Price Predictions Video 01.07.20

Gold remains a “buy on the dips” type of market, as the Federal Reserve does everything it can to liquefy the markets. This means trying to cheapen the US dollar, which of course has an effect on gold itself. When priced in other currencies, gold has already broken out, so it is only a matter of time before the same thing happens here. The $1750 level should be massive support, so I do not necessarily think that we break down below it but even if we did, the 50 day EMA comes into play shortly thereafter. I have no interest in shorting gold, and quite frankly do not even have this scenario where that begins to be a thing in my vocabulary. It is exceedingly rare that a market is essentially a “one-way bet”, but gold is certainly one of those.

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

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