Gold Price Forecast October 19, 2017, Technical Analysis

Gold markets rallied initially during the day on Wednesday, but then rolled over to reach down towards the $1275 level. That’s an area where I would expect to see support, and we have in fact seen that. By rallying here, it’s likely that traders are looking to pick up a bit of value in gold markets. Pay attention to the US dollar in general, as it will likely have an influence on this market. As it rises, typically gold falls, and of course the exact opposite can happen. I believe that the $1300 level above is massive resistance, so I don’t think we get above there easily. The market breaking down below the $1275 level underneath could send this market down to the $1250 level.

Ultimately, I think gold markets will continue to be very noisy, but I think in the short term it is a nice buying opportunity. However, it’s a short-term trading type of situation just waiting to happen. Ultimately, if the markets continue to show this type of volatility, it’s difficult to put any serious amount of money into the gold market, so I think that you will probably see a lot of caution as being the best way to approach. It’s possible that you can use small positions in the CFD markets, or if you must use the futures markets, you should use the micro gold or even mini gold contracts. Currently, there is so much opacity and what the Federal Reserve is going to do, and that of course continues to cause a lot of problems with gold itself. I think longer-term trading is all but impossible, unless of course you are looking to buy and hold. Otherwise, this might be a good market to stay out of as clarity is something that we simply do not have.

Gold Outlook Video 19.10.17