Screenshot-2020-11-24-at-9.54.14-AM-300x199 Is Gold At An Opportune Buy Level?

Gold has broken below the critical 1845 support on high selling volume. It’s now approaching a region between a 50% and 61.8% Fib retracement. That’s the technical picture.

 

Now, think of this: The Fed is going to keep rates near zero for years, possibly until 2023, as it aims for an average inflation rate of 2%. More fiscal stimulus is on the way amid rising pandemic cases and a second set of lockdowns. The US debt has reached $277 Trillion. 14 million people are about to lose unemployment benefits and 30 million households face eviction due to the end of the CARES act. Steven Mnuchin is pulling funding from several emergency loan programs that serve as a fiscal economic backdrop. And Biden just named Janet Yellen as the next US Treasury Secretary. All of this will likely have a negative effect on the US dollar; purchasing power is likely to erode (perhaps significantly).

 

That’s the fundamental perspective on the trade. Also, several banks have a price target at or exceeding [2]. Food for thought for any trader interested in trading gold in the near-term or for the longer-term.

 

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