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Christopher Lewis
Gold

Gold markets gapped higher to kick off the trading session on Thursday, then fell to fill the gap again. By doing so, it shows that there is in fact a lot of buying pressure yet again. The stock markets in the United States have been hammered, so it does suggest that there is more of a run towards “safety” during the day. The $1775 level above is considered to be resistance, so if we can break above there then I think the market goes looking towards the $1800 level. Above that level, then it is a complete break out and we could go looking towards the $2000 level.

Gold Price Predictions Video 12.06.20

Granted all of that is a longer-term call, but it is my base case scenario over the longer term. After all, central banks around the world continue to liquefy markets and therefore debase fiat currencies. This is typically good for gold and should continue to push it higher over the longer term. Beyond that, we have the “fair trade” which of course helps gold as well. With all of this in mind I think there are far too many reasons to think that gold will eventually get a bid.

I have been a buyer of dips for some time, especially closer to the $1700 level. Because of this, even if we break down from here, I think it only offers yet another buying opportunity before we eventually do get that breakout. While the stock markets have been huge in the “risk on trade”, gold has not been buying that story. That is something to pay attention to as well.

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

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