Both stocks and gold are showing technical chart patterns that suggest an imminent correction, said Chris Vermeulen, chief market strategist at TheTechnicalTraders.com.
“It feels like the calm before the storm. I think this market, the stock market, is setting up for potentially a pretty big downdraft,” Vermeulen said.
When a sell-off happens in the equities markets, the metals markets usually get dragged down in the short-term, Vermeulen noted.
“I think we could get a wash-out low here in gold and silver over the next weeks or even next couple of months,” he said.
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