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I’m happy to admit, I just didn’t think PM’s would be hit quite as hard as this. The Dollar was going up and gold has been going up with it for the last 2 years. Now that the Dollar has turned down, and the stock market is crashing, PM’s are being slaughtered as well. It appears it’s just gone too far and everyone is pulling out of everything and into cash. In this scenario, anything is possible. However, with all the panic in the air, I’m going to focus on the critical chart pattern we’ve been following for years now. As long as it’s not broken, there is still hope that the upcoming, massive, global money-printing that will be needed will light that fire once again…
This has to be a major financial institution forced to liquidate.
I also think that there may be selling from central banks/BIS prior to a MASSIVE stimulus for the market so that gold is not seen as rising too much.
All speculation of course…
One thing is for sure dadoc – If gold were to fall to $1400 (for example), then there is a global financial stimulus required to rectify this mess (negative rates, huge bailouts etc), the upside reaction in PMs could dwarf this drop.
The FED is slowwww to react. I’m surprised They haven’t done a special FOMC meeting to state QE + Neg Rates RIGHT away… So, I do think once they print.. this will slingshot back and resume the bullish long term charts for gold… and silver.
That is why playing the long game is INSANE hard to do… unless your initial entry point is ultra low… and able to withstand daily (and some weekly) chart technical breaks. I see this a great opportunity in the making to eventually have a low risk high reward entry point.