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Christopher Lewis

Gold markets went back and forth during the trading session on Monday, as it was Labor Day. After all, a lot of the bigger players were there so it makes sense that we would simply go back and forth. The 50 day EMA sits underneath, at the $1911 level, signifying that the $1900 level will continue to be massive support. With that being the case, I like buying dips but recognize that the gold market might be a bit choppy. The Federal Reserve continues loosen monetary policy and that is the biggest driver of the precious metals markets these days.

Gold Price Predictions Video 08.09.20

At this point, if we get some type of bounce is likely that we could go towards the $2000 level which is obviously a major barrier right now. On the other hand, if we break down below the $1900 level it is likely that we could go looking towards the $1800 level, which is a large, round, psychologically significant figure, which also is the resistance barrier that the market broke out of to go much higher. If the market bounces from there, it is likely that the longer-term trend would return at that point in time.

As long as we can stay above the $1800 level, I will remain bullish of gold, especially with the way the Federal Reserve is behaving. That being the case, I think it is only a matter of time before we go much higher. Ultimately, we are in an uptrend for a longer-term move, not only against the US dollar but multiple other currencies.

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

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