Gold Price Forecast October 4, 2017, Technical Analysis

Gold markets rallied a bit during the day on Tuesday, reaching towards the $1275 level. That’s an area that was resistive on Monday as well, so we did not break above it. I think a roll over from here is likely, perhaps reaching down towards the $1268 level next. After that, the market probably goes down to the $1250 level which has a significant amount of influence on the markets. I think that if we continue to see this selling pressure, we will have opportunities to short this market for quick trades, but I’m not expecting anything major in either direction anytime soon. I believe that the gold markets will continue to be very choppy and indecisive. There will be the occasional geopolitical concern that moves the market, but I think it’s only a matter of time before those fade out of focus as well. After all, recently we have seen the North Korean situation flare up, sending gold higher but only turning around shortly.

If we do break down, I think that there will be plenty of buyers underneath though, because we had a significant break out in the past. Quite frankly, this is a very difficult market to deal with, so if you are looking to play gold, one of my favorite trades right now is for a safety trade, and a way to play volatility – buying call options in the GLD ETF. They are dirt cheap right now, and that is an excellent way to pick up profit in this market. Leverage gold positions to be difficult to hang onto, because quite frankly even though we have rolled over a bit lately, there seems to be a severe lack of determination by market participants in either direction currently.

Gold Technical Analysis Video 04.10.17