Gold Price Forecast January 31, 2018, Technical Analysis

Gold markets have broken down a bit during the session on Tuesday, reaching down to the $1335 level underneath, which is previous resistance. The fact that we bounce from there is not a huge surprise, and I also recognize that the gold markets will continue to be very volatile, but I recognize that the US dollar falling has a very strong influence on the price of gold and should send it much higher. I believe that the volatility should continue to be a major issue, so be careful about jumping into the market with both feet, as I think the volatility could cause losses to pile up rather quickly.

I think that the longer-term target is probably closer to $1400, and if we can break above that level is a very bullish sign and becomes more of a “buy-and-hold” type of situation. Gold markets react to what goes on in the US dollar, and right now it looks very likely that the Forex world is going to continue to punish the greenback, and that should drive gold markets higher. If we get any type of geopolitical event, that should drive gold markets higher as well.

I look at the $1300 level below as a massive “floor” in the market, but I also think that there is a significant amount of support at the $1325 level before we even get there. I like these dips as value and will continue to be opportunities to pick up little bits of gold along the way to build a larger core position going forward.

Gold Outlook Video 31.01.18