Gold Silver Reports – Gold Price Report October 26, 2017 – Gold markets were slightly positive during the day, but gave back most of the gains as we continue to consolidate around the $1275 level. I think we break down below the $1270 level, the market should then go down to the $1250 level underneath.
That’s an area that has been massively supportive and essentially “fair value” for the overall consolidation that the market had been in for some time, and I think that the Federal Reserve looking likely to raise interest rates several times should continue to put pressure on gold, as it rallies the US dollar overall. If we were to break above the $1280 level, then I think somewhere in that area we could start to pick up enough momentum to reach towards the $1290 level, and then the $1300 level. However, I must say that Gold markets look a bit soft currently, so we’ll have to see what happens next.
Keep in mind that one thing that could help gold is some type of geopolitical concern, which is something that we get occasionally. Also, the US Dollar Index should be watched as an inverse indicator, meaning that if it rises, gold will fall and vice versa. I think that the overall attitude of the markets will probably favor the US dollar, so I suspect that it’s easier to fall from here, but having said that you need to follow what happens on the chart, not what “should happen.”
Read More: Gold Spot Price Report October 17, 2017
Gold markets are extraordinarily volatile, so be careful and recognize that the position sizing you take will be important. Ultimately, I do think that the $1250 level is trying to reassert itself as the fulcrum for the market, and that of course has me bearish, at least in the short term overall. – Neal Bhai Reports