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Gold Price Forecast February 1, 2018, Technical Analysis

Christopher Lewis

Gold markets have rallied a bit during the day on Wednesday, but quite frankly it is a little bit stagnant. I believe that the market should continue to go higher longer-term, based upon the US dollar falling. We have the jobs number coming out on Friday that could have a significant amount of influence on the US dollar, which of course has a massive effect on the gold markets. I think that there is an opportunity to buy gold on these dips for the longer-term trader, but in the short term if we can break above the $1350 level, the market should continue to go even higher.

As far as shorting gold is concerned, I have no interest in doing so, as I believe that the longer-term trend of a falling US dollar is set. It doesn’t mean that gold market is going to skyrocket, but I think we are trying to break above the $1400 level, which should allow the market to go much higher for the longer-term, perhaps reaching towards the $2000 level over time. Every time we pull back, I think that it is a buying opportunity to add to a larger core position, slowly building up a massive position. If we break down below the $1300 level, then it would change everything, but I don’t see that happening anytime soon. If we break down below there though, this market could struggle, and it would change everything. With a lot of volatility, I think that if you are cautious you can slowly build up a nice portfolio of gold.

Gold Price Video 01.02.18

This article was originally posted on FX Empire