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'Calm before the storm'; brace for gold, stock markets 'breakdown' - Chris Vermeulen

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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.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.