Gold falls during the week, showing signs of resistance again

Gold markets initially tried to rally during the week, but then found the area above the $1350 level to be far too expensive. We rolled over from there and broke down towards the $1325 level. Market participants continue to be in a bit of a sideways manner, and I think that we are currently bouncing around between the $1300 level on the bottom, and the $1325 level on the top. Longer-term traders I believe are trying to build up enough pressure to finally break out for the longer-term move higher but are struggling to find their footing. I think that breaking above the top of the range should send this market much higher and go to the $1400 level.

With the negative candle, I believe that we are starting to see a bit of value in this market, and I believe that somewhere near the $1310 level we should see buyers coming back into this market as it has been relatively resilient as of late. Once we do get a breakout, the market should continue to extend even higher, with $1400 be in the next major resistance. If we can break above there, then the market is free to go to the $1800 level, and then the $2000 level after that.

Ultimately, I think that the $1300 level should continue to offer a “support level” that we can take advantage of, as it has been relatively reliable over the last couple of months and has caused a reaction in the market every time we have approached it. The 20 SMA continues to tilt higher.

Gold Analysis Video 02.04.18