Gold price moved below its 200-day moving average. Naturally, many people think it is a bearish sign.
But my take on it is, do you think gold market makers not knowing this popular moving average? Of course they do. They know perfectly well that many people use 200-dma as stop losses, so they intentionally run through it to realize losses for those poor folks. It is an old trick of robbing people's money on Wall Street played times and again.
But the fact is, market makers have to cover their short positions sooner or later. My guess is sooner rather than later, because they are afraid now that people who see through their trick get in at this low level and hold on to it (either real gold or paper gold) will make loads of money from them down the road. Mark my word.
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