Gold Prices This Week And Next Week's Forecast

Sunday, October 22, 2017

gold bars

Last week we wrote: Gold now sits between two critical lines. The momentum of last week should carry through with a move to “kiss” $1,308 early this week. But after that is anyone’s guess. We could just as easily see a retrenchment to retest $1,300 OR we could simply break through higher to $1,325 in the next five days.

Well, gold did retrench, but it plunged all the way to $1280, instead of just stopping at $1,300. Indeed, as far as gold bulls were concerned, last week was a rough one as gold fell right out the gate on Monday and pretty much didn’t look back. It ended the week down 1.85% to $1280.

There are a couple of reasons for this.

  1. There are a number of rumors that President Trump might nominated either Kevin Warsh or John Taylor as the next Fed Chair. Both are fiscal hawks. As such, rumors of their potential appointment has ignited the $USD which in turn pushed old prices down.

  2. The abject market rigging by the Bank of Japan (BoJ) has reached truly epic proportions. At this point the BoJ isn’t even trying to mask the market rigs, engaging at the same time every day (9:45) as well as any time stocks are breaking down. This rigging has hurt gold as it is highly deflationary for the financial system.

Have a look at the below chart of the Yen/ $USD pair (blue line) overlaid with gold (black line). The two practically move lock-step on a daily basis.

Having said all of this, the technical damage from last week was pretty severe. The September low of $1,273 is now in play as is $1,260. Put simply, the momentum is now down in the near-term.

We remain very bullish gold into year-end, but it looks like we need a final flush to get rid of the momentum players. That final flush should complete this week.

Graham Summers

Chief Market Strategist

Phoenix Capital Research


Gold-Eagle provides regular commentary and analysis of gold, precious metals and the economy. Be the first to be informed by signing up for our free email newsletter.

Free Gold-Eagle Newsletter!

  • Fresh weekly insights on gold, precious metals, and the economy
  • Leading authors from around the world
  • Always free
  • Stay informed!


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.