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Christopher Lewis

Gold markets broke down a bit during the trading session on Tuesday, slicing through the $1900 level. By looking at the size of the candlestick, the market looks very negative. Ultimately, the $1850 level underneath is a potential target due to the fact that it is where the recent bounce occurred. At that point, I think there is a significant amount of interest in that area, and support as well. If we can break down below the level, then the market is likely to go down to the $1800 level, an area that I think will attract a lot of attention.

Gold Price Predictions Video 14.10.20

Furthermore, the 200 day EMA is approaching that level, and ultimately, there is a lot of noise in that general vicinity, and therefore I think that the buyers will be attracted that level as it was the scene of a major breakout. At this point, the 200 day EMA is a longer-term trend signal as well, so a lot of interest will be seen in that general vicinity. Quite frankly, if we break down below there then gold is in serious trouble for a longer-term move to the downside.

I do not think that happens, not with all of the central banks around the world to continuing to flood the markets with cheap money. That of course will send gold higher eventually, as traders start to look for hard assets instead of fiat. Ultimately, this is a market that looks like it is going to offer plenty of value on dips, and I think that given enough time we will go looking towards the $2000 level overall.

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

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