Gold Price Forecast November 8, 2017, Technical Analysis

The gold markets continue to be very volatile, as we fell significantly during the trading session on Tuesday, slicing through the $1275 level. This market looks likely to reach down to the $1265 level underneath which has been supportive. Essentially, I look at this as a market that is bouncing around between the $1265 level underneath, with the $1285 level above being resistance. A back and forth type of situation has presented itself with the $1275 level as “fair value.” I would trade this market from a back and forth kind of attitude, and use a range bound system. With precious metals currently, I am looking at the stochastic oscillator more than anything else, save the pricing of course. I believe that the market could continue to offer nice back and forth trading, and for those of you who have the patience to wait for the market to get to the extremes mentioned above, you should find a “reversion to the mean” opportunity every few days.

Until we break out of this tight range, I think that short-term and small should be the 2 things you think of first. Ultimately, if we do break down below the $1265 level, then we probably go to the $1250 level underneath, which was the “fair value” of the longer-term consolidation that we had recently tried to break out of. Alternately, if we break above the $1280 level, then the market probably goes looking towards the $1300 level above, which was the top of the overall consolidation for the longer-term move. They move above there should send this market to much higher levels, and could get longer-term “buy-and-hold” traders involved in the market, perhaps holding out for the larger move. However, the US dollar has been strengthening, so it’s likely that the gold markets won’t be able to break out anytime soon.

Price of Gold Video 08.11.17