Gold Price forecast for the week of January 29, 2018, Technical Analysis

Gold markets rallied during the week, breaking above the $1360 level, and heading towards the $1375 level. I believe that the market will continue to be bullish longer-term, but we may need to pull back a bit as we have probably gotten a little bit ahead of ourselves. Markets do tend to revert to the mean, which means a pullback is necessary. At the very least, I believe that we need to go sideways so that we can build up momentum. I suspect that the market will be volatile, but I’m not interested in selling these potential pullbacks, because I think it’s only a matter of time before the market rejoins the uptrend. Pay attention to the US Dollar Index, because it course will have an influence on where we go next.

Remember, gold tends to be the “anti-dollar” trade, so if it falls, gold typically does quite well. If we can finally break above the $1400 level, that will free this market to go much higher on a longer-term time span, and I do expect that to happen eventually. However, I doubt it’s going to happen this week. Look at pullbacks as potential value and be patient about adding to your longer-term position. The 20 SMA on the weekly chart is bullish, and I think it will continue to be so. It’s slightly drifting higher, so this gives us an opportunity to take advantage of gold in a very casual and steadfast manner. In an interesting turn of events, as crypto currency markets have fallen apart, it seems more money is flowing into the gold markets.

Gold Technical Analysis Video 29.01.18