Gold Price Forecast February 7, 2018, Technical Analysis

Gold markets have initially tried to rally during the day on Tuesday but found the $1345 level to be a bit too resistive to continue to go higher. We have rolled over significantly, as we continue to see the US dollar strengthening in general. I think that the market continues to be concerned about various issues around the world, although things are starting to stabilize.

Looking out on a longer-term horizon, the $1350 level should be supportive as it has been resistive as well in the past. I think that if we bounce a bit from here, we could then go back towards the $1340 level next. This will move in negative correlation to the US Dollar Index, which has been strengthening. The market touched a major bottom in that chart, so it’s not a huge surprise that we are seeing the US dollar rally a bit. However, if we continue to see strength in the US dollar, we could break down below the significantly important $1325 level, which could send this market down to the $1300 level. The selloff has been rather brutal, and I think it is a general attitude of fear that we are seeing grip the markets. However, remember that fear is typically short-lived, as we eventually find value hunters. I am going to be patient and wait for the bounce or some type of supportive candle on the daily chart, before I put any money to work though. If we do break down, I think it will be a grind lower.

Gold Technical Analysis Video 07.02.18