Gold Price Forecast November 2, 2017, Technical Analysis

Gold markets exploded to the upside during the trading session as traders have closed out some of their short positions ahead of the Federal Reserve meeting. However, we have ended up at the $1275 level, which is essentially fair value now. Every time we have moved in one direction a bit too far, traders have raced back to that level. We have recently made a little bit of a “higher low”, so perhaps traders are starting to think that the Federal Reserve may drag its heels on interest rate hikes, which would be good for gold, as it should bring down the value of the US dollar. However, I don’t think that’s the case, and it’s likely that we will continue to see a lot of back and forth momentum. I think at this point, if the buyers come back to this market we will be contained below the $1300 level, unless the Federal Reserve completely changes its overall attitude, something that doesn’t look likely to happen.

Alternately, if the Federal Reserve looks to be very hawkish, the gold market should roll over a bit, perhaps reaching down to the $1250 level. That’s an area that is the middle of the longer-term consolidation area, with the $1200 level at the bottom, and the $1300 level at the top. In general, I think that the volatility is going to continue to be an issue, but I believe that the US dollar is going to strengthen in general, and that of course has me leaning to the downside, unless of course we were to somehow close above $1300 on the daily chart. I suspect that as a bit much as for this market but if you are a bit more cautious with your trading, perhaps you may want to stay out of the market for 24 hours.

Gold Price Video 02.11.17