The Dollar is correcting after approaching the upper trend channel earlier this month. The decline is nearing support near the 200-day MA, and the 9-day RSI is oversold. Prices could probe the lower boundary, but a bottom is becoming likely. We could see a trend reversal around the October 30th Fed announcement.
Gold has been consolidating for about 6-week after peaking in September. The COT report remains near-term bearish with commercial shorts just off record levels – it will take time to work down those positions. The next buying opportunity in gold may not arrive until November. I have a minimum target of $1410 – $1420 and see the potential for a backtest of the June $1380 breakout area.
AG Thorson is a registered CMT and expert in technical analysis. He believes we are in the final stages of a global debt super-cycle. For more information, please visit https://goldpredict.com/
Author: AG Thorson
Source: Finance. Yahoo: Gold Price Forecast – October Bounce into a November Breakdown?