Gold Price Forecast August 10, 2017, Technical Analysis

Gold markets rallied significantly during the day on Wednesday, slamming into the $1275 level. This is an area that has caused both support and resistance in the past, but it looks as if her to try to break out above there. The main resistance for the consolidation is closer to the $1300 level, so would not surprise me to see the market go looking for that level. Signs of exhaustion at the $1275 level could be a selling opportunity, and the most certainly will be at the $1300 level. Quite frankly, this is all about the Korean Peninsula and the rhetoric coming out of both sides, but I believe that the market will eventually calm down. Because of this, I do not believe that this is going to be where we see gold breakout to the upside longer term. I think the consolidation holds, so any buying opportunity will be short-term at best.

Continued volatility

I believe that we will continue to see volatility in this market, and it will be driven by headlines crossing the wires. The market will be very erratic at times, so therefore I would be hesitant to use extreme leverage, as it could get you hurt rather quickly. I believe that eventually there will be a better selling opportunity than buying, but we need to see the rhetoric calm down between Washington and Pyongyang. As soon as it does, gold will probably roll right over and start falling again. The $1250 level underneath should continue to be a magnet for price as it is essentially “fair value” in the overall consolidation that we have seen in this market for several months. Ultimately, I think the market feels the most comfortable at that level, and I don’t know that it has changed even with a few random comments.

Gold Price Video 10.8.17