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Christopher Lewis
Gold daily chart, July 23, 2018

Gold markets spend most of the day rallying on Friday, and then got a boost after Donald Trump suggested that the Federal Reserve should keep its interest rates lower, sending the US dollar lower in general. However, that comment has been quickly rebuked by Federal Reserve members, and therefore I think it doesn’t have any “legs.”

US dollar strength should continue to be a major problem for the gold market, and because of this I think that we will see sellers come back into this market place. If we can continue to rally from here, the next logical place to see a lot of selling as the $1240 level. However, I think that the downside is starting to get somewhat limited. After all, the US dollar is simply far too overbought. I look at the $1200 level as a potential “floor” in this market and think that a lot of attention will be paid to that level once we get there.

The alternate scenario, (isn’t there always one?) Is that we turn around and break above the $1250 level. At that point, I think we will have blown out enough sell orders to send the market even higher. I do think that the longer-term traders and it come back and pick this market up, but right now we need to do some basing first. The only thing that could change this is if there is a sudden reversal of fortune for the greenback, from a longer-term standpoint.

Gold Prices Video 23.07.18

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