Gold Price Forecast October 2, 2017, Technical Analysis
Gold markets when sideways over on Friday, as the markets churned. I think the markets were taking a bit of a breather after a very volatile couple weeks, and I think it’s only a matter time before the markets make a decision. However, the weekly candle does look very negative, so I suspect that a breakdown below the $1250 level could happen. If that does, I think that the $1200 level will be the next target for support. Longer-term, I think that the goal markets still could find a bit of support, especially due to geopolitical concerns which seem to flareup every couple weeks. The random Tweet, a politician in North Korea, any of these things can move the goal markets. However, it seems that those comments are having less effect on the market in general. Because of this, I think that any selloff will be short-term in nature, just as any explosive move to the upside will be. In other words, this is a short-term traders kind of back and forth market.
If we were to break above $1300, I think we then go to the 1325 level, which has been resistance in the past. I still think that the choppiness will continue, the goal markets are far too sensitive the various things around the world to keep them from jumping around like that. Ultimately, this is a market that will be highly influenced by the Federal Reserve and the outlook for its interest rate policy. Right now, they look hell-bent on shrinking the balance sheet, and that should be a bit of a lift for the US dollar, which works inversely to this market. However, threats coming from North Korea can change everything in an instant, so keep that in mind. Quite frankly, small positions are preferred.
Gold Price Forecast Video 02.10.17
This article was originally posted on FX Empire