Today, a 5 year historic trend line has been taken out on the weekly chart of gold. Apart from being considered a possible historic day, it could also mark the beginning of the downfall of the precious metal towards much lower levels.
As mentioned before, I expect this precious metal to take a plunge towards the 1044 level initially. However, I truly believe it will go even lower.
Again, by doing cross analysis, together with USDx and other assets, It's even more reassuring that the USD will accelerate its rise in the upcoming years. This means, once again, that it will gain against ALL other majors. Also, it means that equities will also accelerate its devaluation.
I urge people to keep in mind the 1.20 level on the EURUSD pair as being, perhaps, the most import key level regarding FX and equities. If and when this level gets taken out, we will see a steep plunge in the markets.
Of course, all of this will take a few months/years to develop. However it is nor mere speculation but a very plausible scenario.
Best,
Mauro.
Gold breaking a 5 year trend line. A historic day perhaps? Time will tell.
Your insights are much appreciated!
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