Gold Price Forecast February 6, 2018, Technical Analysis

Gold markets rallied a bit during the trading session on Monday, as we have reached as high as $1339. We pulled back a bit since then, as we are trying to find the floor in the market. I think that we are trying to accumulate a bit of bullish pressure, but it is going to be very difficult to do. Once we do get the bullish pressure though, and more importantly once we break above the $1340 level, the market should then go looking towards the $1350 level above. A break above there sends this market much higher, and I believe opens the doors to the $1400 level which is vital.

We are starting to see buyers reenter the market, showing that in fact there are people willing to pick up dips, so therefore I do remain generally positive when it comes to gold. I think that we will eventually go looking towards the $1400 level, and once we get beyond there, it becomes more of a “buy-and-hold” situation. Until then, I prefer to buy the dips, adding slowly as it works in my favor. I recognize that volatility is going to be a major issue with this market, and of course leverage should be dialed down so that you don’t bury yourself. The less leverage, the better off you are going to be trading gold currently. Once we clear the $1400 level, leverage can be dialed up. Until then, caution will be the better part of valor.

Gold Prices Video 06.02.18