Gold Price forecast for the week of February 5, 2018, Technical AnalysisGold markets were negative during the week, but most of the selling occurred on Friday. This is mainly in reaction to the jobs number, and the negative candle of course is probably a sign that we may get a bit of a pullback. Hopefully, we should continue to pull back a bit, to get plenty of value hunters into the market.
Gold markets continue to look bullish overall, but the last week was negative. Most of the negativity was found on Friday after the jobs number though, so I can’t put much emphasis on the negativity. I believe that the market is bullish for reason, as the US dollar has been pummeled. I think that continues to be the case for the rest of the year, but we may get a bit of a pullback in the short term. When you look at the weekly chart, it’s easy to see that we are in a bit of an up-trending channel, and more importantly: at the top of the channel. The market continues to look like it is attracting longer-term investors, because when you look at the last year, we have gradually risen. There is a significant amount of resistance just above at the $1375 level, and I think it leads to $1400. If we break above that level, the market goes much higher, perhaps reaching towards the $2000 level.
If we pull back from here, I suspect that the $1300 level could be massively supportive, and I would love to see a pull back to that area to offer the ability to take advantage of value. I would leg into the position, not necessarily jump in with both feet, because gold has the unique attribute of being in an investment, and not a trade.