Gold Price Forecast – Gold markets fall hard to kick off week

Gold markets fell rather hard to kick off the week, dropping down to the $1187 level during the early US trading. However, we have seen a little bit of resiliency here and on the hourly chart and inverted hammer was just broken, giving is perhaps a bit of a lifeline.
Christopher Lewis
Gold daily chart, October 09, 2018

Gold markets fell hard to kick off the week during the early hours in the United States, crashing into the $1187 level. There is a significant amount of support at the $1185 level, so I think it is very likely that we will continue to see a lot of fight in the market around present levels. Ultimately, I believe that we will see a significant attempt to break down below here and of course this will be driven more than likely upon the US dollar strength, especially against some emerging market currencies. As emerging markets have crumbled a bit, we have seen the Gold markets suffer as well. Ultimately, I think that selling the rallies continues to be the way forward, but I also recognize that there is a certain amount of resiliency just below, so there’s no point in trying to press the issue. Quite frankly, I think that it is only a matter time before the buyers come back in, but we should also see selling closer to the $1200 level.

If you have the ability, follow the US Dollar Index, if not you can follow the EUR/USD pair to get a gauge on US dollar strengthen overall, and recognize that as the US dollar strengthens, Gold will typically fall. In general, I am bearish for gold from the short-term standpoint but I also recognize that we are looking at a potential longer-term buying opportunity relatively soon.

Gold Analysis Video 09.10.18

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.