Gold Weekly Price Forecast – Gold markets continue to show support

Gold markets pulled back a bit from the $1325 level again, only to find buyers as we reached towards there. The hammer from the previous week of course shows just how resilient the buyers are, so I think it’s only a matter of time before they come back. I don’t have any interest in shorting Gold, but I also recognize that there is a lot of confusion right now, so I think we will have a bit of a “buy on the dips” scenario. If we do break above the $1325 level, then the market goes looking towards the $1350 level. That is a major resistance barrier, so if we were to break above there then we would go looking towards the $1400 level.

Gold Outlook Video 18.02.19

Below the hammer I see major support at the $1300 level that extends down to the $1275 level. In other words, it’s almost impossible to short this market but I also recognize that you don’t want to be too highly levered to gold right now as the choppiness could get you into serious trouble. Buying on the dips and adding as we break out is my strategy going forward. However, if we were to break down below the support levels that I have mentioned, then I think we would go looking towards the $1260 level, an area where we have seen a lot of bullish pressure as well. Pay attention to the greenback, it should lead the way as the Federal Reserve continues to do what they can to kill off the greenback.

Please let us know what you think in the comments below