U.S. Markets closed

Gold Price Forecast – October Bounce into a November Breakdown?

AG Thorson

The declining Dollar and weaker than expected economic data are supporting gold in October.

DOLLAR CHART

The Dollar is correcting after approaching the upper trend channel earlier this month. The decline is nearing support near the 200-day MA, and the 9-day RSI is oversold. Prices could probe the lower boundary, but a bottom is becoming likely. We could see a trend reversal around the October 30th Fed announcement.

Gold has been consolidating for about 6-week after peaking in September. The COT report remains near-term bearish with commercial shorts just off record levels – it will take time to work down those positions. The next buying opportunity in gold may not arrive until November. I have a minimum target of $1410 – $1420 and see the potential for a backtest of the June $1380 breakout area.

AG Thorson is a registered CMT and expert in technical analysis. He believes we are in the final stages of a global debt super-cycle. For more information, please visit https://goldpredict.com/

This article was originally posted on FX Empire

More From FXEMPIRE: