Gold Price Forecast October 6, 2017, Technical Analysis
Gold markets initially went sideways on Thursday, but then broke above the $1275 level to test the $1278 level. We pulled back below there, and reached below the $1275 level yet again. Essentially, this market looks as if it is trying to form a bit of a shooting star, on the daily timeframe. That’s a negative sign, and I think it shows that we will eventually break down a reach towards the $1250 level. There is a lot of volatility in gold, because we do not have the catalyst to go higher in the form of a North Korean missile launch, or some type of dovish and is coming out of the Federal Reserve. The Federal Reserve looks very likely to cut back on quantitative easing, shrinking the balance sheet. That is positive for the US dollar, but I also recognize that there will be the occasional geopolitical concern that could have money flowing into gold. It’s not until we break above the $1300 level that I would be a buyer of this market longer term. At that point, the market should then go to the $1350 level next, as it was a massively important level in the past.
I would be remiss if I didn’t mention the $1200 level underneath, because it was such massive support in the past. I don’t think we go any lower than that, even if we do start to sell off. Ultimately, the market should continue to offer both buyers and sellers opportunities, as there is so much in the way of noise. I think that most of your trading in the gold market is probably going to need to be done based upon short-term moves. Longer-term trading is very difficult to do if there is any leverage involved. However, buying physical gold of course is always a good opportunity for a longer-term investment.
Gold Analysis Video 06.10.17
This article was originally posted on FX Empire
