Christopher Lewis
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Gold weekly chart, February 12, 2018

Gold markets have rolled over during the week, initially trying to break out above the $1350 level, but found that area to be far too resistive to continue. By doing so, we break down below the $1325 level, reaching down towards the $1300 level. I believe that the $1300 level is the next support level, but there’s probably even more support closer to the $1275 level. If you squint, it doesn’t take much to imagine an uptrend in channel. I believe that the market will eventually find buyers, but it may be a little bit lower. Gold has been grinding, and that’s the biggest thing you need to keep in mind. It hasn’t been exploding to the upside, so at this point I think that we would anticipate more of the same, a gentle grind to the upside.

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With this in mind, I believe that the market should give us an opportunity to pick up a little bit of value here, with the patient trader being able to take advantage of what has been reliable price action. If we were to break down below the $1250 level, then we could drop pretty significantly. Until we do that, I look at it as a “buy the dips” type of mentality that remains, but I also recognize that low leverage is probably the best way to approach gold, as we have a lot of work to do to break out to a fresh, new high.

Gold Price Video 12.02.18

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