Gold Price forecast for the week of October 2, 2017, Technical Analysis

Gold markets initially rallied during the week but found a lot of trouble at the $1315 level to turn around and drop significantly. We ended up breaking below the $1300 level, but more importantly, we have formed a shooting star sitting right on top of the previous support. Because of this, looks as if the … Continue reading Gold Price forecast for the week of October 2, 2017, Technical Analysis · FX Empire

Christopher Lewis

Updated Fri, Sep 29, 2017, 10:32 PM

Gold markets initially rallied during the week but found a lot of trouble at the $1315 level to turn around and drop significantly. We ended up breaking below the $1300 level, but more importantly, we have formed a shooting star sitting right on top of the previous support. Because of this, looks as if the markets are on shaky ground, and a break below the lows of we could send this market down to the $1250 level. A break above the top of the candle would be extraordinarily bullish, and probably need some type of external factor to get it to do so. If it did, we could go right back to the highs at $1350. I think that would probably be some type of geopolitical event, so would probably be a very sudden thing.

Gold Price Predictions Video 02.10.17

If we do break down, look for the market to go as low as $1200 and still be in the present consolidated range with a slight uptrend. I think that the market may have gotten ahead of itself, but if the US dollar continues to strengthen, we may continue to break down. I expect a lot of volatility, and this could be a very difficult market to trade. I think that longer-term trades are probably best done with physical gold anyway because the leverage can get traders into real trouble. Leverage gold trades tend to be more of the short-term variety. There are other ways to play this market, and I suggest using them. Futures markets will be very volatile. I like the ETF GLD, binary options, and the CFD market as well. There are plenty of ways to play gold, so the futures markets tend to be for when I am much more confident in the move.

This article was originally posted on FX Empire