Gold's major support levels to watch

2020년 11월 9일

As gold sells off following the overreaction to vaccine news and a supposed election conclusion, there is weakness afoot. This is in my opinion a chance at finally having a proper correction following the almost parabolic surge since March.

For now the support at around 1850 is holding, I expect this to break however. From here we can see that the 60% fib retracement from the measured move that began in March post liquidity crisis and rode up to the highs in August suggests a retracement down to 1800-1820. Conveniently this is also the July breakout level from which the shot to 2000 came from. This zone makes a fantastic lower target therefore.

Unlike many bulls (and long term I am a HUGEEEEEEE GOLD BULL) I have maintained that we will see 1800 and possibly lower this year/ early next year. 1800 needs to be revisited and this may finally be it. I am a buyer at 1800 and I expect a lot of buyers will jump in. If we have the right combination of pro stock marker media driven narratives re the corona boner and Biden/ Trump saga however, there is even a chance 1800 will not hold.

Beneath 1800 there are fantastic lower supports around the 1760 mark. If this did occur the move would be short and sharp in my opinion and if we do revisit these 1750 levels back up the damn truck, you're eating duck and drinking wine this Christmas.