Gold Price Forecast February 21, 2018, Technical Analysis

The US dollar has rallied a bit during the trading session on Tuesday, showing signs of a “risk off” move. Ultimately, this could favor gold as well, but more importantly, I see a significant amount of support just below. I believe that the $1325 level should offer a “hard floor”, thereby keeping the market one that I want to buy. I believe in buying the dips, and I think that adding slowly to a core position is probably the way to go. In fact, I believe the 2018 could be rather good for the gold markets, as the US dollar will probably struggle in the bond markets sell off.

Above, I see the $1400 level as a massive barrier to break above, and if we could, the market becomes more “buy-and-hold.” I think that short-term pullbacks continue to be an opportunity to build what I plan on seeing as a large position, but I also recognize that you need to be careful. I believe it’s going to take a while to break above the $1400 level, but when we do it should send a tsunami of fresh money into the market. At that point, the market will probably reach towards $1800, and then eventually $2000.

Volume is decent, and that of course is a very good sign. I think that ultimately the market will continue to sell the US dollar in the currency world, and that of course should have a nice “knock on effect” in gold. It isn’t going to be done in one massive move though, so patience will be needed.

Price of Gold Video 21.02.18