Gold Price Forecast March 1, 2018, Technical Analysis

Gold markets have gone sideways on Wednesday, after selling off rather drastically on Tuesday. The US dollar strengthening of course is a main driver of bearish pressure in gold, but I think we are getting close to a bounce in the EUR, which by its very significance in the US Dollar Index should send gold higher. It may take a day or so, but eventually I think value hunters come back into the gold market, and once we break above the $1325 level, we will probably grind towards the $1340 level, and then eventually the $1350 level.

I expect volatility, which is typical for gold markets, so keeping your leverage low is going to be crucial, as it will lie you to hang on through the noise that we are likely to see. I think that longer-term, we are going to try to break above the $1400 level, and once we do becomes a buy-and-hold situation. In the meantime, we need to build up enough confidence to break that barrier, and once we do I think gold will explode. Gold markets of course are going to pay attention to the US dollar, so the inverse correlation should continue.

If we were to break down below the $1300 level, that would send the market much lower, but I think that the market is in what’s essentially an “accumulation phase”, meaning that buyers are willing to come in and pick up cheap gold as it appears. A breakdown below the $1300 level could change things for the short term, perhaps sending the market down to $1275 after that.

Gold Price Forecast Video 01.03.18