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Gold Price Forecast – Gold Breaks Down

If you remember from my previous videos, I have suggested that there was a gap near the $1950 level that needs to be paid attention to, and still needs to be filled. That was the area that I thought we could see buyers return if we slice through the $2000 level, but quite frankly I did not expect to see that happen so quickly. This move happened in just a short hour or two basically, but nonetheless this is a market that had gotten far overstretched.

Gold Price Predictions Video 12.08.20

Keep in mind that the gold market had been on fire as of late, so selling off the way it has should not be a huge surprise considering that it is a small market. After all, if a huge player comes into the market and looks to take advantage of profits, that can kick off a lot of algorithmic trading, and cause a bit of a chain reaction. The Sam’s quite a bit in the futures market, and in the smaller ones like the precious metals market it tends to be a bit exaggerated.

After this absolute shellacking during the day, I think there will be a lot of traders out there looking their wounds, and this could set up for a nice buying opportunity, perhaps later in the week. I would not jump into it right away, and I think that the $1900 level will be crucial to pay attention to. If we can stay above that level, then it is only a matter of time before the buyers return and break back over the $2000 handle.

This article was originally posted on FX Empire

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