Gold Price Forecast – Gold markets break major level

Gold markets broke above the $1300 level as we kicked off the week, and then even dipped below to find buyers. However, I think we have some choppy action ahead of us.
Christopher Lewis
Gold daily chart, January 29, 2019

Gold markets gapped higher to break above the $1300 level on Monday, as we have plenty of reasons to think that the global risk appetite will continue to drop. If that’s going to be the case, the gold market should continue to rally. Beyond that, the Federal Reserve looks likely to remain somewhat soft, and of course accommodative, so I think that the Gold markets will continue to rally because of both of these reasons.

Gold Analysis Video 29.01.19

With the global concerns and the geopolitical issues out there been such a major problem, I think that gold makes a lot of sense. Breaking above the $1300 level of course has been a major victory for the buyers, and I think that at this point it’s likely that we will continue to see this market reach towards the $1325 level, followed every $25 all the way up to the $1400 level which is my longer-term target. I think pullbacks at this point continue to have plenty of support, especially near the $1280 level. Because of this, I like buying short-term dips, because quite frankly the candlestick on Friday was very impulsive, shattering the previous consolidation area. Based upon the consolidation area by itself, that should send this to at least the $1320 level. That doesn’t mean that it’s going to be easy, but I do think that the recent action suggests that there is more to come.

Pay attention to the US dollar, if it continues to drop I think we will continue to see precious metals being bought, obviously gold included.

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