Gold Prices This Week And Next Week's Forecast

Sunday, October 8, 2017

pallets of gold bars

Last week we wrote: Put simply gold is in a kind of “no man’s land.” It is unlikely it will sell off much more - and it is similarly unlikely it will roar higher. Consolidation/bottoming is the name of the game this week.

Gold ended the week down 0.77%. However, the vast majority of that move came over the weekend when gold opened Monday sharply down. The rest of the week we had the predicted consolidation/bottoming process. Indeed, for a volatile asset class like gold, the precious metal traded within a meager 0.3% range from Tuesday through Friday.

The good news is that after last week’s snore fest, gold is now looking even better for bulls. The Slow Stochastics are well into oversold territory and turning up. RSI is within spitting distanced of oversold. And the chart even looks as though we’re about to turn.

More importantly, gold Miners had a great week last week. You wouldn’t know it judging from sentiment or the financial media, but the Gold Miners ETF (GDX) dramatically outperformed stocks last week including the beloved NASDAQ.

Miners typically lead gold on turns. To see miners not only outperforming gold but outperforming even the most beloved stock index in a week in which most traders were panicking is a very positive sign that the turn is at hand.

It is possible gold has a final drop to $1260 early this week, but the odds HIGHLY favor the next leg up to begin before the week is over. The upside target for this move is $1,420. We should be there before the end of November.

Our forecast for this week: Gold should finish the week higher. Any final flush of the weak hands will hit before Wednesday. And by Friday gold should be up and well into its next big rally. The turn we’ve been waiting for is finally here.

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Graham Summers

Chief Market Strategist

Phoenix Capital Research

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Graham Summers is Chief Market Strategist for Phoenix Capital Research, an independent investment research firm based in the Washington DC-metro area with clients in 56 countries around the world.

Graham’s clients include over 20,000 retail investors as well as strategists at some of the largest financial institutions in the world (Morgan Stanley, Merrill Lynch, Royal Bank of Scotland, UBS, and Raymond James to name a few). His views on business and investing has been featured in RollingStone magazine, The New York Post, CNN Money, Crain’s New York Business, the National Review, Thomson Reuters, the Glenn Beck Show and more.