Gold XAUUSD forecast for the week:
Market participants should not expect the downtrend to continue on gold this week. Gold and stock markets have an inverse correlation, and now investors are actively snapping up shares in the stock markets around the world. J. Trump is ready for a trade agreement with China, which eliminates the geopolitical risks, which worried investors in recent months. The US stock market this week may update the historical maximum, which may adversely affect the value of gold. Gold has recently traded at a six-year high and precious metal there is a serious technical correction.
XAUDUSD recommendation: Sell 1488/1497, and take profit in 1465
BRENT crude oil forecast for the week:
Two reasons for investors to buy oil this week. Firstly, the growth of geopolitical tensions in the Middle East will support the strong demand for oil. At the end of last week in the Red Sea it was attacked oil tanker belonging to Iran. Tehran, in turn, announced that the attack should Saudi Arabia. Second, the US Federal Reserve announced the launch of the bond buyback program on October 15, 2019 July 1, 2020, which will contribute to the inflow of capital into risky assets, which traditionally refers oil.
Brent recommendation: Buy 59.33 / 58.50 and take profit 61.77
SP500 Index forecast for the week
This week in the US corporate reporting season kicks off. Market participants expect a moderate growth in corporate earnings in the range of 2-3%. However, you can expect a good bullish trend on the market, as already from Tuesday October 15th the Federal Reserve will begin operations on the open market, which will buy short-term bonds with maturities of up to one year. This process will help to reduce interest rates on the bonds that in turn will have a positive impact on the stock market.
SP500 recommendation: Buy 2966/2948, and take profit 3029