Gold Price Forecast October 10, 2017, Technical Analysis

The gold markets rallied rather significantly during the Monday session, using the $1275 level as support. By spring boarding off of that level, the market reach towards the $1285 level above, which has been resistance. I think short-term pullback should be buying opportunities, and if we can stay above the $1275 level, the market should continue to have a bit of a bullish posture to it. On longer-term charts, we formed a hammer for the weekly timeframe, which of course was a very bullish sign last week. I think that the market is ready to continue reaching towards the $1300 level, but it of course will be rather choppy, as gold markets tend to be.

There are a lot of ways to play this move, for example selling a vertical put spread in the options market. That’s what I have done, but you can also play the GLD ETF, trade the CFD market, and of course trade the futures markets. The Australian dollar could get a bit of a boost from the gold market as well, which is a proxy way for currency players to get involved in the gold markets, but there are a lot of other issues there. Ultimately, if we can stay above the $1275 level, I think this will have a bit of a “knock on effect” in various other markets. Alternately, if we were to break down below the $1275 level, I think we will probably go looking towards the $1260 level underneath. The gold markets tend to be very choppy, but are sensitive to geopolitical concerns. There are a lot of issues, not just and North Korea, but in places such as Turkey and Spain that could cause more upward pressure as gold could be bought as a bit of a safe haven.

Gold Price Video 10.10.17