Gold Price Forecast October 20, 2017, Technical Analysis

Gold markets initially fell during the day on Thursday, but then exploded to the upside as we tested the $1290 level. By doing so, looks likely that the market will continue to go higher, perhaps reaching towards the $1300 level yet again. This is an area that has been massively resistive in the past, and the top of the overall consolidation area. I think that the recent breakout above that level being repudiated was an opportunity for traders to pick up value, as we found buyers near the 61.8% Fibonacci retracement level. Ultimately, this is a market that I think will continue to do reasonably well, but the US dollar has the opposite effect. If the greenback starts to fall, that helps as well, so hope that the US Dollar Index start rolling over. It currently looks as if the EUR/USD pair is rallying, and that is the biggest component of the Dollar Index.

If we pull back from here, it’s likely that the $1275 level underneath continues to be supportive, and therefore I think that the market continues to be a “buy on the dips” situation, but you honestly have to worry about geopolitical concerns, because quite frankly that is one of the biggest drivers of the gold market. Right now, I think that this is simply an anti-US dollar play, so again, pay attention to the Forex markets as they could give you a heads up as to where gold should go. Gold is probably best traded in small increments, building your position every time we dip on the short-term chart. I don’t know of will break above the $1300 level, but if we do we could go to the $1325 level after that. Regardless what happens, I expect this market to be noisy, it typically is.

Gold Price Predictions Video 20.10.17