Gold Price Forecast November 1, 2017, Technical Analysis

Gold markets initially went sideways during the trading session on Tuesday, hovering above the $1275 level. We broke down below there though, reaching towards the $1265 level underneath. Ultimately, this market continues to be very volatile, but I think that the $1280 level continues to be the short-term target. If we do break down from here, I think the market goes down to the $1250 level, which is the middle point of the larger consolidation area that the market has been in for several months. The US dollar of course has its effect on gold, as when it rises it should send gold to lower levels. Alternately, if the US dollar falls, that will help gold. This is more than likely going to be a situation where the Federal Reserve comes into play, as people believe that the Fed is going to raise interest rates several times over the next several months. We have a meeting coming up, and that of course will give us clues as to what they are going to do, but right now the market is pricing in a hike in December. If something comes along to derail that, gold should rally.

Overall, I believe the gold is going to continue to be bearish though, as we have stair stepped our way to lower levels. I think that the $1250 level underneath continues to be a longer-term “fair value” as the market continues to see a lot of noise. I think that in general, risk appetite is going to continue to be reasonably well, and therefore I think that it’s only a matter of time before people leave the safe haven of precious metals after headlines that drive it higher. This market should continue to be difficult to deal with regardless.

Gold Outlook Video 01.11.17