Gold Price Forecast October 3, 2017, Technical Analysis

Gold continue to be volatile, initially falling during the session on Monday, but finding enough support near the $1275 level to turn around. Because of this, I think we are starting to try to put in a bit of a bottom, and I also recognize that the $1300 level is very important. If we can … Continue reading Gold Price Forecast October 3, 2017, Technical Analysis · FX Empire

Christopher Lewis

Updated Mon, Oct 2, 2017, 10:24 PM

Gold continue to be volatile, initially falling during the session on Monday, but finding enough support near the $1275 level to turn around. Because of this, I think we are starting to try to put in a bit of a bottom, and I also recognize that the $1300 level is very important. If we can break above that level, then the market should continue to go much higher. A break above the $1300 level has me looking for $1325 level, and perhaps beyond that. We were to break down below the $1275 level with any type of significance, the next support level could be found out the $1250 level. Either way, a lot of the volatility that we see and Gold markets will come down to a couple of several factors.

First of all, there is the “risk off” trade that can come into the markets and push gold higher. However, we also have the Federal Reserve looking to trinkets balance sheet, essentially tightening monetary policy. This is good for the US dollar, which of course works against the value gold in general. So having said that, I think a lot of this will come down to comments coming out of the Federal Reserve, or for some type of flare up with North Korea which can happen at any moment. That being said, I have noticed that the recent reaction to North Korean provocation has been much more muted than in the past, so I think that we are more than likely going to see the Fed control where this market goes next than anything else. Again, break above the $1300 level is very bullish, while a breakdown below the $1275 level has me selling, at least for the short-term. Either way, it’s going to be very choppy.